Gray squares around mouse pointer

We have a macbook pro 15".  Occasionally the computer stops responding and there are gray squares around the mouse pointer as we move the cursor.  I called tech support and they said it was out of warrantee.   Any help here is appreciated..  I tried resetting the macbook (taking out the battery etc.) still have the problem.
thanks
M-

Arghh - Universal Access, Zoom, Box follows mouse pointer!
Don't know why I never spotted it earlier - maybe because it's not something I've ever used or needed to switch on.
Weird it was on after the update though!

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