Solved
Managed to start the game a second time with the cursor working normally. Forgot to mention i had logitech G25 wheel installed. Pressed the throttle ingame and the cursor started going down again. When the throttle was half pressed the cursor was working normally.
So seems that Puzzle Agent won't work when i have the wheel plugged in. Unplugged the wheel and started the computer again. Game is working normally now.
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