This was a fairly common issue in the first couple releases of the X series, but doesn't come up much any more.
A couple of thoughts:
Your signature says Cambridge; are you really still at that release or on the current Jamaica Plain?
Try setting Windows Visual Effects for "Best Appearance" rather than "Best Performance", "Custom" or "Let Windows be smarter than me". The Now Cursor display depends on some of these features to display properly.
In any case, restarting SONAR should restore it for the time being.