Here a sample, I have the cursor as a bitmap in resource.
private Cursor HandClosed;
In Contstructor of my form:
Bitmap test = Properties.Resources.HandClose;
test.MakeTransparent(Color.Fuchsia);
HandClosed = new Cursor(test.GetHicon());
And I use it on a panel, this line is in a mouse move event, because I change the cursor depending on its postion:
panel4.Cursor = HandClosed;
Hopefully this helps.
Check this links too
http://www.unifycommunity.com/wiki/index.php?title=Custom_Mouse_Pointer[
^]
http://www.switchonthecode.com/tutorials/csharp-tutorial-how-to-use-custom-cursors[
^]