Mark asked me to pass this on as he is out of town.
"I just tried Caesar 3 under xfce4 and got the same results, so it's either a configoption I haven't figured out or is real problem. I vote for the second. I can see absolutely no real answer to why, with the left button held down and dragging an xterm around the screen a Windows game should react at all."
There are cases where an application wants to know where the mouse is, even if it is not in the application. For example, in Windows (at least Win2K), run Program->Accessories->Accessibility->Magnifier.
I would guess that there is a problem somewhere in enabling/disabling this behavior.
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