I see this exact behavior also - I haven't fiddled around to find a fix yet, but this post below appears to be knowledgeable.
http://fedoraforum.org/forum/showthread.php?t=190122
I'll probably try an F10 upgrade (I'm betting that F10 has the same VMWare mouse problem - historically these VM-breaking updates that occur at the time of a major Fedora version release come from code that is in common with the new release).
But here's a better analysis and probable fix -
http://forums.fedoraforum.org/showthread.php?t=203697