Black border outlines everywhere I put my cursor! Help!

I just upgraded my early 2008 MacBook to lion, loaded vmfusion ware, windows 7, quick books, downloaded office 2010 cause lion doesn't do 2004. All seemed well, then a few days later black borders followed cursor everyone it moves across page. Put windows in trash, started loading it, qb, etc all over again. Everything Seemed fine then happened again. VMware suggested it was ram issue - had the fun process of buying multiple PNY 6400 ram and having geeks tell me over and over it should ramp down, finally got part patriot 5300 at frys. Perfect. But black borders still wigging out screen in windows virtual Machine. Mac side no issue. I also loaded adobe reader x and firefox toolbar- could those be causing conflicts? Help!

Open the Windows 7 Control Panel and look for the option to add or change items for users who have difficulty seeing or hearing. I don't have Windows 7 loaded on this machine so I can't give you the exact description.

You may have accidentally turned on one of those "assisted" feature items similar to the Mac OS X "Voice Over" feature which does the same thing in OS X.

I had seen previous thread and had checked universal assist settings on Mac side- I can't figure out what that would be on windows side- why is the cursor activity related to asisted sound?

I am not a Windows 7 genius by a long shot but I think the following will get you to the Windows equivalent of the Universal Access features. Launch Win 7 and let it get to the point that it asks for Username and Password. At the bottom left of the screen is a semi-transparent button (triangle maybe). Click there and see if it brings up menu to choose/set those options. It may be a right click I am working from memory here.

I don't see any triangles- I've hit system restore a few times because it was able to get me back to where it was working but then it would happen again- the only variable changing appears to be it falling asleep and when I hit the spacebar, the screen comes back on and the normally grey bar on the bottom of the blue screen(dock) is black and then any cursor movement starts the blinking black outlines around the cursor movement. Thoughts?

Universal Access has always been set from Control Panel in Windows, so if that's what is causing the black border, it should be found there.

You also stated the black outlines are blinking. That's a bit different. I'm wondering if it has to do with the special cursors available in Windows 7? Try this:

Open Control Panel and select Mouse. Then choose mouse pointers and cursors. Let's see what they're set at. It should show you what's being used and you can also change it from there.