FFXI Gamepad Issue

Let me start by saying I've searched google for hours on this problem and have not had any luck, so I really hope the FFXIAH community has an answer to this.

So I installed FFXI on my new PC (the digital DL from S.E. store, not Steam). Whenever I use my gamepad I have this odd issue with the mouse cursor. I use the XBox 360 wired controller with official drivers. I have the controls configured similar to the Xbox 360 version of the game. Whenever I press "cancel" (B button) the mouse cursor stays on screen. For example, when I lower the chatlog or exit out of a menu, the mouse cursor appears and doesn't go away no matter how many times I press B button. Every time I press B button the mouse cursor flashes and stays on screen.

I've tried re-installing the game MANY times and it doesn't fix the problem. I've deleted all files associated with FFXI and POL. I even deleted all FFXI/POL registry files and did a clean re-install. Still no luck. I deleted the Xbox 360 controller drivers and re-installed it. I've unplugged my mouse and still the same issue occurs. I'm at a loss for words...

Please FFXIAH community, help me ; ;