Thanks guys for all the posts on the other issues, I now have the graphics resolved and even the intro plays smooth. However, does anyone know how to prevent the mouse cursor from freezing.

It is making the game almost unplayable for me.

well mine freezes on after going into the campaign menu and won't move at all which makes it impossible to play... Would like to know step by step how to resolve the issue... Running Win 7.
If it won't be fixed its a waste of $10

On my Vista helps to set a desktop color quality to 16 Bits.

I'm also having this mouse freeze issue. (I've already tried the file rename solution. This, alas, does not issue the mouse freeze problem.) very frustrating!

I can pretty much go around the issue with the tabbing in and out trick but not once I get to the Lillehammer map in the 1938 campaign. Now I'm completely stuck...

I also I have the same problem. GOG would have to sue for fraud because it does not work the program to anyone.

making color 16 bit really works on win 7 but its bit annoying

edit: but i still have problems in game. freezing continues between menus. i think our money wasted...

edit 2: i found something. if u let windows to find suitable compatibility mode, mouse freezing problem is fixed. but then u have a new graphic problem; colors are mixing. in this condition u can control mouse in game and menus but graphics makes the game unplayable.

I have a Vista and have the same problem with the mouse. If you change your compatability to windows XP (series pack 2) with colors 256 it should work. If not then try the other compatability modes. To change compatability right click the shortcut on your desktop and go to properties. Hope this helps!

I'm playing around with comparability modes but the mouse still always freezes after clicking on something. Worse is that if I alt-tab out and in I get the messed up colors again. You know, I don't think you can advertise a game as being compatible for an OS if you need to do a whole lot of work just to get it to work.

try this it sometimes helps
go to start
then run
type DXDIAG
disable direct draw

I am having same problem.

Sometimes I can stop the mouse freeze issue by turning the colors down to 16 bit, and other times the mouse still freezes.

I actually think that the issue is the whole screen freezes. On my netbook if i hit the caps lock button it brings up a graphic on screen. when i do this it seems to refresh the game screen so the mouse will work until i click on a unit or something.

-edit I am running Windows 7 Starter on a netbook. win 95 compat mode; administrative rights enabled.

Just wanted to let everyone know that I installed this in Ubuntu (Linux) with Wine and it works perfectly - no freezing mouse. Just in case some of you are dual booting Windows and Linux like I do.

As far as Windows 7, I haven't had any luck not freezing right after the New game button.

Just bought it...same problem :(

I had the same issues until I found the thread detailing the need for using DirectX 9, once I had that installed, all of the problems went away for me. Of course YMMV.