For me also the mouse is suddenly sitting tight and invisible in the middle. This I think after installing the latest NVIDIA drivers AND activating SLI. Worked fine before SLI I think.....
If I CTRL TAB out of the application, the mouse is stuck to the middle of the screen. Funnily enough this is not the case, once I'm in the options screens or so of Demigod, then the mouse behaves normally.
Anyhow, thanks for the preliminary 'windowed' solution, will have to do for now.
Hope this helps in solving the issue,
BIOS: Phoenix - AwardBIOS v6.00PG
Processor: AMD Athlon(tm) 64 X2 Dual Core Processor 3800+, MMX, 3DNow (2 CPUs), ~2.0GHz
Memory: 2816MB RAM
Page File: 1016MB used, 5862MB available
Windows Dir: H:\WINDOWS
DirectX Version: DirectX 9.0c (4.09.0000.0904)
---------------
Display Devices
---------------
Card name: NVIDIA GeForce 9600 GT
Manufacturer: NVIDIA
Chip type: GeForce 9600 GT
DAC type: Integrated RAMDAC
Device Key: Enum\PCI\VEN_10DE&DEV_0622&SUBSYS_82801043&REV_A1
Display Memory: 512.0 MB
Current Mode: 1280 x 1024 (32 bit) (60Hz)
Monitor: SyncMaster 930B/930BC/930BF(Digital)
Monitor Max Res: 1280,1024
Driver Name: nv4_disp.dll
Driver Version: 6.14.0011.8618 (English)
DDI Version: 9 (or higher)
Driver Attributes: Final Retail
Driver Date/Size: 6/10/2009 06:03:00, 5908608 bytes
WHQL Logo'd: n/a
WHQL Date Stamp: n/a
VDD: n.v.t.
Mini VDD: nv4_mini.sys
Mini VDD Date: 6/10/2009 06:03:00, 8087712 bytes
Device Identifier: {D7B71E3E-4562-11CF-5952-8BA200C2CB35}
Vendor ID: 0x10DE
Device ID: 0x0622
SubSys ID: 0x82801043
Revision ID: 0x00A1
Revision ID: 0x00A1
Video Accel: ModeMPEG2_C ModeMPEG2_D
EDIT: Problem seems solved with new patch, thanks and thumbs up 