Windows 7: Mouse pointer not showing in VM of XP

I installed XP Pro, giving it two cores and 4 Gigs of RAM and it's own USB wireless kb/mouse.

I have internet access, but it won't update [I think the problem is on the MS side] everything else was fine.

So, I rebooted...

NOW, the mouse works, but I cannot see the pointer. If it bring it down to the start button, it glows, I can click on it, I can launch stuff off of it [unless I move the mouse off the menu]

What do I do? So far, I tried checking the BIOS, realized the video RAM was at 256Meg, and I raised it to 1,024Megs, and it didn't help.

Update: I manually downloaded SP3, and installed it. Now I can update.