Yeah, I know, it seems wierd that I use the example, but that's exactly my problem. The mouse shows just to the right of where it clicks. Any help would be appriciated...

XF86Config:
Section "ServerLayout"
Identifier "XFree86 Configured"
Screen 0 "Screen0" 0 0
InputDevice "Mouse0" "CorePointer"
InputDevice "Keyboard0" "CoreKeyboard"
EndSection

Section "Files"
RgbPath "/usr/X11R6/lib/X11/rgb"
ModulePath "/usr/X11R6/lib/modules"
FontPath "/usr/X11R6/lib/X11/fonts/misc/"
FontPath "/usr/X11R6/lib/X11/fonts/Speedo/"
FontPath "/usr/X11R6/lib/X11/fonts/Type1/"
FontPath "/usr/X11R6/lib/X11/fonts/CID/"
FontPath "/usr/X11R6/lib/X11/fonts/75dpi/"
FontPath "/usr/X11R6/lib/X11/fonts/100dpi/"
EndSection

Section "Module"
Load "record"
Load "extmod"
Load "dbe"
Load "dri"
Load "glx"
Load "xtrap"
Load "type1"
Load "freetype"
Load "speedo"
EndSection

Section "InputDevice"
Identifier "Keyboard0"
Driver "keyboard"
Option "XkbModel" "pc104"
Option "XkbLayout" "us"
EndSection

Section "InputDevice"
Identifier "Mouse0"
Driver "mouse"
Option "Protocol" "auto"
Option "Device" "/dev/mouse"
EndSection

Section "Monitor"
#DisplaySize 300 230 # mm
Identifier "Monitor0"
VendorName "GWY"
ModelName "FPD1530"
Option "DPMS"
HorizSync 31.5-48.5
VertRefresh 50-70
ModeLine "1024x768/60Hz" 65 1024 1032 1176 1344 768 771 777 806 -HSync -VSync
EndSection

Section "Device"
### Available Driver options are:-
### Values: <i>: integer, <f>: float, <bool>: "True"/"False",
### <string>: "String", <freq>: "<f> Hz/kHz/MHz"
### [arg]: arg optional
#Option "SWcursor" # [<bool>]
#Option "HWcursor" # [<bool>]
#Option "NoAccel" # [<bool>]
#Option "ShowCache" # [<bool>]
#Option "ShadowFB" # [<bool>]
#Option "UseFBDev" # [<bool>]
#Option "Rotate" # [<str>]
#Option "VideoKey" # <i>
#Option "FlatPanel" # [<bool>]
#Option "FPDither" # [<bool>]
#Option "CrtcNumber" # <i>
Identifier "Card0"
Driver "nv"
VendorName "Generic"
BoardName "nv"
EndSection

Section "Screen"
Identifier "Screen0"
Device "Card0"
Monitor "Monitor0"
DefaultDepth 24
SubSection "Display"


Depth 16
Modes "1024x768/60Hz" "800x600" "640x480"
ViewPort 0 0
Virtual 0 0
EndSubSection

SubSection "Display"
Depth 24
Modes "1024x768/60Hz" "800x600" "640x480"
ViewPort 0 0

Virtual 0 0
EndSubSection
EndSection


Section "InputDevice"

Identifier "Mouse"

Option "Protocol" ""
Option "Device" "/dev/mouse"
Driver "mouse"
Option "Emulate3Buttons"
EndSection


Section "ServerFlags"

EndSection

OK, I'm not sure exactly how to fix your problem, but here is what I would do.

Firstly, you are not using Nvidia's driver, but the free version that came with your distro. Download it from www.nvidia.com and follow the instructions to install it. Don't forget to modify the XF86Config when you're done as per the instructions which will be installed at /usr/share/doc/NVIDIA_GLX-1.0/README

If that doesnt fix your problem, then try editing the XF86Config, and change the line
#Option "HWcursor" # [<bool>]
to
Option "HWCursor" "off"

This will make sure the cursor is rendered in software so you can isolate the problem to a driver configuration problem or something else.

Hope this helps.