Hide Mouse Pointer while typing...

Below Screen shot explains everything.

Description:
Click on Start, Settings, Control Panel , then double-click on Mouse . (XP Users: Start / Control Panel / Printers & Other Hardware / Mouse.)
On the Mouse Properties window, click on the Pointer Options tab and you will see where it says Hide Pointer While Typing (again, note that not all systems have this feature). Give a check mark in the box. Click Apply , then OK and your on the way to less distracting typing!