Monkey Island No mouse cursor- cannot control character

Hi I've encountered an error playing Monkey Island 2 Special Edition. I have progressed 77% of the game without any errors and at this point the game becomes uninteractive. I have no mouse cursor and no key commands work.

The section the error occurs is on youtube http://www.youtube.com/watch?v=7m4XOTHQexI every video clearly shows the player has a cursor. I played the original version of this game over a decade ago and at no point did that game become unplayable by removing the mouse cursor.

I have loaded earlier game saves and the fault is not there until I reach 77% at which point the cursor disappears. I have also tried switching to "classic view" to see if the cursor will reappear- but it does not.

I have read numerous walkthroughs and FAQs and this error is not documented, it is not part of the game, nor is it a cut scene.

Anyone else bought MI2:Special Ed from Steam? And have you had this error? I feel jipped that I've spent all this time on it and won't get to continue.

[SonyaWins]

I also have this problem at 77%. I failed to solve the puzzle at that point the first time around (at which point I did have a cursor), but when you are given a second opportunity the cursor no longer exists.

I'm not sure what to do except to try again from an earlier save point, but unfortunately for me the last time I saved was at about 12% game completion. I am not ready to repeat that much work yet.

Anyone have any suggestions or solutions? 3pwood1, did you ever get this fixed somehow?

[semmelweiss]

Same problem at 69%.
I have the Steam version