I don't know how to be of much more help, really, Neal. This install we speak of had been used happily for around three months, was updated around weekly intervals, does include GoogleEarth, was modified to look and feel like "mine", was the install that required the time delay we sorted out on the Forum to auto log-in, is on an SD that among 2-3 of them that I keep for this notebook has the 'problem' install on it, and is one of at least three reported cases of LXDE 2010.10 that have lost titlebars and demonstrated the same cursor activity. This after a period of static apart from updates normal daily use. Whatever the common feature in those three cases we may never know. Not without comparison. GoogleEarth updated??? All I can say for certain is that (the very next boot??) after a regular update I lost the normal use of the desktop and posted it, and this being about the third such time it happened to me (see Forum thread about laptop doing it around the USB dongle install), I resolved to reinstall 2010.10 'cos it rocks, fully update, and then only install what I need from Synaptic and not update but reinstall at 6-12 month intervals.
And yes, I will copy and paste your file, and report. Gotta go to work now.