Is your mouse a PS/2 mouse or USB? What nVidia card are you using? I would try Knoppix for a different Live CD/DVD and see how it does. I doubt that the SuSE live CD uses the "nvidia" driver but possibly the "nv" version of the driver. I've never encountered this failure, but it looks like an easy fix, just add
Code:
Option "SWCursor" "on"
to the 'Section "Device"' portion of the "/etc/X11/xorg.conf" file to fix the issue. You could boot to runlevel 3 first to edit the file in text-mode then run Xwindows with the "startx" command to see if that fixed the issue.
HTH, don't want to see you give up...