Hi,
How to reproduce this bug:
1) download emutos-256k-CVS-20130604.zip
2) download the most recent Hatari from HG Tip.
3) build plain old Hatari v1.6.2+
4) delete directory ~/.hatari
5) execute Hatari,
press f12,
select: System
uncheck: Patch TOS for faster boot
select: Back to main menu
select: ROM, and browse for etos256uk.img
select: Back to main menu
select: Save config
select: Quit
6) execute Hatari and wait for cursor arrow to appear,
then attempt moving the cursor.
7) press altgr-r to reset Hatari; cursor is movable this time.