Here is a tutorial on how to use the mouse following feature in Blender Game Engine. It's very useful and easy.
If you have any questions, post a comment or message me.
HERE IS THE SCRIPT YOU NEED!
This was updates to not use depreciated commands and added indentation by sunivb: http://www.alumnos.inf.utfsm.cl/~svbrand/MoveMouse.py
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Blender Game Engine Mouse Follow Function | NatokHD