There are several open player bugs related to the hand cursor not working in certain browsers. In others the hand cursor will toggle but will remain indefinitely.
Historically Flex has never used buttonMode=true on our buttons, fwiw.
You can try the latest 10.1 beta player, I believe a few have been fixed (bugs that is), but a couple others were injected.
Thanks for the reply.
The reason why I had buttonMode in the tag was for Safari, for the button to work fully as expected. But if I omit it, the handcursor does not appear when its over the button.
But what is even worst, is the rollover and rollout event handlers are not even getting called.
I ended up reinstalling FlashBuilder and the problem went away.
However after I reinstalled, I should have reverted my project settings to default. I did the following recommendations under the "Workaround for using latest nightly SDK 4.0 builds with Flash Builder B2".
At any rate, the button behaves the same regardless of browser being used.