Ok, I found out that there is an error in the .xsession file, the correct version is below, note the line 'icewm &' has now become 'icewm-session &' - this should bring back the correct background and hopefully the mouse will behave noremally again :-) #!/bin/sh xrdb -merge ~/.Xdefaults & icewm-session & idesk & while [ 1 ] ; do sleep 1000d done