The cursor doesn't record properly (see attached gif). It seems to work fine on my co-worker's i386 box so this could be an x86_64 specific problem.
Created attachment 135805 [details] gif showing the borked cursor
This is something that needs to be resolved upstream. FE has the latest released version. Once a new version is available upstream I can push that into FE.
Did you file a bug upstream or should I?
You should... I'm not able to duplicate the issue since I don't run byzanz on a x86_64 box.