FULL PRODUCT VERSION :
java version "1.7.0-ea"
Java(TM) SE Runtime Environment (build 1.7.0-ea-b104)
Java HotSpot(TM) 64-Bit Server VM (build 19.0-b05, mixed mode)

Also reproducible on 6u21

ADDITIONAL OS VERSION INFORMATION :
Microsoft Windows 7 Ultimate

A DESCRIPTION OF THE PROBLEM :
Run next code snippet and move mouse over JButton. Instead of arrow cursor you will see "caret" cursor.
Same for TextArea

import java.awt.TextField;
import javax.swing.JButton;
import javax.swing.JFrame;
import javax.swing.SpringLayout;
public class MixingCursorTextField {
public static void main(String[] args) {
        final JFrame f = new JFrame("Mixing : Simple Overlapping test");
        f.setLayout(new SpringLayout());
        f.setSize(200, 200);

        TextField tf = new TextField("AWT Text Field");
        f.add(new JButton("JButton"));
        f.add(tf);

        f.setVisible(true);
    }}