Thanks for replying. I finally figured out what was wrong. It turned out that Adobe Reader was trying to use a hardware based cursor which I think my laptop does not support.
I added the following line in the monitor section of xorg.conf file:
This made the program dependent on the software cursor. Although it uses more resources, it fixed my problem and has made the application usuable.
I had to think outside the Vector box and looked in other Linux forums to find the solution to my problem. I found this solution in the Ubuntu forums. http://ubuntuforums.org/showthread.php?t=38048