IPad Simulator Multitouch Cursors not showing when the window is zoomed to 100%

I have iPhone SDK 3.2 installed and working on an iPad app. However, the iPad simulator does not show two gray multi-touch cursors when I hold down the ALT / OPTION button and move the mouse. This only happens when the simulator scale is set to 100%. If I set 50%, they show up. When I install the iPhone, they appear. This is a 100% iPad only. The multi-touch still works great, I just can't see where I'm touching.

I am trying to close the simulator completely by going from iPhone and back. Change of size. All kinds of things. Has anyone else seen this issue? Anyone have any suggestions on how to fix this? I have searched Google and searched SOF for anyone with this problem, but it seems to me that this is just me.

If it matters, I have a Mac Mini 1.83 GHz Intel Core 2 Duo with Snow Leopard 10.6.3 installed.

Thanks.