FreeCol started development long before Windows developed XP, Vista, and Windows 7. Users of those new systems may need to adjust their "Compatibility" so as to use an earlier version of Windows to play properly. If you can't see your pointer or it jumps uncontrollably or there are other graphic features that seem to be malfunctioning, close and investigate.
Open the "exe" file's "Properties" (which you may do from right-clicking on the shortcut on your start menu or desktop).
One of the tabs should say "Compatibility". Tell it you do want to try to run the game using an earlier version. "Windows 98 / Windows Me" works for some people, e.g. on a Toshiba Satellite laptop, but "Windows 2000" may be better (and certainly works well with version 0.10.2 on at least one Toshiba Satellite).