I have two monitors in an extended desktop configuration on my Windows 7 computer, one of which is a touchscreen device, one of which is not. When I first got the touchscreen, the touch cursor would appear on the non-touchscreen monitor. This frustrated the heck out of me as instead of acting like a touchscreen monitor, my new touchscreen was acting like a large trackpad!
After a bit of searching around I found that the way to resolve this problem is to go into the Control Panel, find the Tablet PC Settings item and run the Setup wizard. This will allow you to switch things around so the touch cursor appears on the touchscreen monitor and not the non-touchscreen device.