Wacky mouse pointer when using Word 2007/2010

Whenever I use Word (other apps and the desktop are fine) the mouse pointer constantly changes (every second or faster) its appearance. This occurs so quickly that I can barely make out the different components. It seems to rotate/cycle between the standard thick white arrowhead, an I-shaped cursor with four small adjacent horizontal lines, and a blue circle. I first noticed this while using Word 2007 so I upgraded to Word 2010 but the problem persists. My OS is Win7 Professional.

For weird things I usually shut the computer down, pull the power cord out [Desktop] or unplug the power cord and battery [Notebook], unplug any keyboard and mouse or wireless dongle, wait a minute or two and try again. If the keyboard and/or mouse are wireless I change the battery to known good or new ones.