virtualbox.org

I recently installed Damn Small Linux in VirtualBox 4.2.18 on Lion 10.7.4, and everything works fine except for the cursor. The specific issue is that the cursor doesn't move whatsoever. The mac cursor does disappear under the window, but comes out on the border. Any ideas or help at all would be extremely useful.

Moved to Linux Guests.

Assuming you have a GUI then normally to move the mouse cursor you first click on the window, at which point the mouse input is captured and you can move the mouse cursor.

For a supported Linux distro you can get a better integrated mouse by installing the Guest Additions. However DSL is not a supported distro, so the GAs are not guaranteed to work.

When the window is in focus (when clicked) it still doesn't work, I have used a few other Linux Distros and they've worked fine.

Yes, I just tried it myself and got the same result. In fact once I installed to the hdd and reached the desktop I saw precious few signs that anything was happening at all. Unfortunately DSL is not a supported guest so it either works or it doesn't. I assume it was the latest RC2 you were using? You might try raising the matter on the DSL forums. Perhaps their support for PS/2 mice is suspect (that being what I configured).