yeah, this one is pretty weird.

I'm running 10.5.5, started with Kalyway. I don't remember this happening until either the 10.5.4 or 5.5 update. Any help would be great

looking back on this quite vague post, im happy to come back with the solution:
transmission for some reason was freezing my mouse arrow from moving around, however i could still use the scroll wheel for expose and scrolling up and down windows just fine. weird.