Disabling the Activities Auto-Frame (black rectangle around screen) from popping up whenever your mouse 'hotspots' near the edge of the screen is done by 'commenting out' two lines of code in one of the Sugar interface Python scripts.
The description below also contains the keystrokes for commenting out the 2 lines using the built-in "vi" editor (for those of us that don't have access to any other editor.)
1) Bring up a terminal window and drop into SuperUser with the "su" command...
2) Change directories by typing (note all lowercase):
3) Load the correct file using the 'vi' editor:
vi eventarea.py (Open the script w/ the vi editor) 56[shift]G (Jumps cursor to code line 56) i (toggle into "Insert" mode -see flag at bottom of screen) # (inserts the 'pound sign' to comment-out this code line) [esc] (press Escape button (upper left circleX) to exit insert jh (moves cursor down and left) i (toggle into "Insert" mode -see flag at bottom of screen) # (inserts the 'pound sign' to comment-out this code line) [esc] (press Escape button (upper left circleX) to exit insert ZZ (press the ZZ key (capital Z) twice to Save and Exit the vi editor)
4) Restart Sugar by simultaneously pressing the [ctrl]-[alt]-[erase] buttons.
That's it, now the black Auto frame no longer pops up due to cursor movement when you're in an activity or not at your Home screen. You can still manually invoke the frame and see your Activities tool bar by pressing the Frame button at the upper right of your keyboard.