OK here are the screeshots of options in DxWnd that made the game playable on another computer with the same mouse cursor problem:
(You need to activate expert mode to have all options working).
(You have to let dxwnd main program window open for it be effective).
If mouse then its OK even red...
Try using DXWND, and check some input things related to mouse like keeping focus etc... I know this problem.
I can send you a screenshot of options that fix that behavior, but that needs dxwnd atm.
If you have this kind of error, its because game process is not really terminated, sometimes it hangs when you close.
Just open the process manager and kill the game exe process.
Then relaunch it should work.