Mouse Cursor Broken for Character Movement

This has been going on for something close to a year perhaps, or at least it feels like it, and I figured I'd finally report it in case no one ever did until now.

Platform: Windows
ISP: Sonera
Type of Internet Connection: ADSL
Internet Connection Speed: 8Mbps
Date & Time: Oct. 8, 2013 13:37 EEST
Frequency: Always
Character Name: Dragoy
Race: HumeM
World: Fenrir
Main Job: Samurai, Lv.99
Support Job: Bard
Area and Coordinates: Bastok Markets/Mog House, <pos>
Party or Solo: Party with 1 member
NPC Name: None
Monster Name: None
Steps:

1. Enable hardware mouse cursor in FINAL FANTASY XI Config.
2. Move a character with the left mouse button (assuming common defaults). The cursor does not change as it used to do, but instead, it remains as the default idle cursor.
3. Move the camera with the right mouse button (again assuming common defaults). The cursor does change into the blue one, as usual.
4. Move a character after moving the camera. The cursor changes. However, the cursor used at that point is the most recent (blue) one that was used while moving the camera. It will also not change the direction it is pointing towards regardless of the direction of movement; only moving the camera will change it.