Using 2008-11-05 rawhide install images, I pxe booted an install with: lang=en_US.UTF-8 keymap=uk vnc console=ttyS0,115200n81 method=... The first curses screen I hit was "Configure TCP/IP" and it was lacking any focus indication - i.e. nothing was highlighted on the screen. Continuing on, after the VNC server was started and the serial console was dropped to a shell, there was no cursor. Forcing the terminal to reset with gnome-terminals Terminal->Reset restored the cursor. Sounds similar to the plymouth issue Gerd mentions in: https://bugzilla.redhat.com/465706#c3 but plymouth isn't involved here, so ...
This bug appears to have been reported against 'rawhide' during the Fedora 10 development cycle. Changing version to '10'. More information and reason for this action is here: http://fedoraproject.org/wiki/BugZappers/HouseKeeping
Wow, there's a long forgotten bug. Haven't seen it since, closing