[5.7] My cursor keeps blinking when I loop - why?
The most likely explanation is that the frame you're looping back to has a transition on it. Each time you loop back, the transition happens -- you just don't see it because both sides of the transition are the same. Transitions pretty much stall all other activity until they're done, including event handling. Director hides the cursor while the transition happens, just so you know you can't do anything with it. When the transition is over, you get the cursor back.
So, if you loop over the transition, the cursor flashes on and off (often more off than on since transitions can be slow).
The solution is to place the transition on one frame, with a second otherwise identical frame immediately afterwards. Then, loop back to the second frame rather than the one with the transition.