Mouse pointer integration with Virtual PC 2007 and XP SP3

I decided to install Windows XP Service Pack 3 in a Virtual PC 2007 session.  Everything came up fine but the mouse point integration breaks with XP SP3.  Mouse point integration is when you can simply drag your mouse from your host to guest and back out again without having to hit the ALT key.  Anyone else seeing this?

I actually had to uninstall / reinstall the additions to get this working again.  All is well again.