You have to change a different setting.
on the mouse control panel settings go to pointer options
on the visibility section see if the - "hide while typing" is checked or not.

I'm guessing your is - uncheck it and see if that fixes it for you.

[ 1.

Open Mouse by clicking the Start button Picture of the Start button, clicking Control Panel, clicking Hardware, and then clicking Mouse.
2.

Click the Pointer Options tab, and then do any of the following:
*

To change the speed at which the mouse pointer moves, move the Select a pointer speed slider towards Slow or Fast.
*

To make the pointer work more accurately when you're moving the mouse slowly, select the Enhance pointer precision check box.
*

To speed the process of selecting a choice when a dialog box appears, select the Automatically move pointer to the default button in a dialog box check box .
*

To make the pointer easier to find when you move it, select the Display pointer trails check box, and then move the slider towards Short or Long to decrease or increase the length of the pointer trail.
*

To ensure that the pointer doesn't block your view of the text you're typing, select the Hide pointer while typing check box.
*

To find a misplaced pointer by pressing the CTRL key, select the Show location of pointer when I press the CTRL key check box.
]
http://windows.microsoft.com/en-US/w...e-settings#EKD