Windows (at least the .NET Cursor
class) doesn't appear to like icons that are more than 1-bit black and white images.
32x32 bit are still supported. I tested using one of the old CodeGear Shared\Images\Cursors
images, as well as a new cursor created in GreenFish Icon Editor and in the Visual Studio Image Editor (File->New File->Cursor file), using the following code:
method MainForm.MainForm_Load(sender: System.Object; e: System.EventArgs);
begin
self.Cursor := new Cursor('E:\code\XHAIR1.CUR');
end;
So reducing the color depth to 1-bit should make it work for you.