I've found out (by accident) how to get the wrong cursor e.g. the double-headed arrow, at various times.
It looks like LS is using the cursor last used in the host; to reproduce, try this (in energyXT):
- insert a LiveSlice comp,
- open a Sequencer and overlap it with LS,
- click on the Sequencer and move the mouse over one of the edges of the Sequencer window, so that it is now over the LiveSlice GUI,
- you can also do this in other hosts if you position LS next to a place where the cursor changes in the host.
See this screenshot

Big pic:
http://img407.imageshack.us/img407/4326/lsbr048a5kp.png
It doesn't happen if, for example, an MS Word window overlaps LS.

