I'm not quite sure if this is a bug with VMWare or Backtrack, but I'll go ahead and post it.
Whenever booting Backtrack 4 Final or R1 from the ISO or a live USB created with unetbootin in VMWare 7.1.1 build-282343 the mouse is offset from where the effect is. Below is a screenshot of me dragging a box when I booted the BT4R1 ISO on a WinXP VM for some forensic stuff. The red X is where the mouse cursor was when I screenshotted.
This error does *not* occur when I install backtrack to the HDD in a VM and when I use the VM provided by the site.