Comment 5 for bug 1250777

/etc/X11/xorg.conf is not longer used these days, but I may still work. If you look in /usr/share/X11/xorg.conf.d you will find some config files. I have 61-opentegra.conf (renamed from 61-modesetting.conf). I think there is no HWcursor option, SWcursor true implies HWcursor false. The modesetting driver seems to be ok btw. It may take some time to fix this in opentegra, but at least I notified the original author. Thanks for testing!