This curser is only seen when on the gold div...it isn't set up for the body part!!!
 
This way  Both the sender and receiver need the WMP Reg toolkit from lettermanstationery site. 
 
http://www.lettermanstationery.com/wmp9toolkit.htm
 
File embedding has to be enabled. 
 
In the style section of your stationery this has to be put in:

<STYLE>BODY {
  CURSOR: expression('url('+cursor.Filename+')') }
</STYLE>

or if using a div like here then this:

.mycursor {
 ; CURSOR: expression('url('+cursor.Filename+')'); POSITION: relative;

Then you need to put this in after the:

 <BODY bgColor=#ffffff>

<OBJECT id=cursor style="LEFT: -1800px; POSITION: absolute; TOP: -1800px"
height=0 width=0 classid=CLSID:05589FA1-C356-11CE-BF01-00AA0055595A>
<PARAM NAME="Filename" VALUE=""></OBJECT>

Don't worry if this doesn't look right OE will expand the <OBJECT> Prams when it is sent or sent to drafts.

Your full file path has to go in where it says <PARAM NAME="Filename"VALUE=""> Between the "C:\Documents and Settings\BluesLady.DREAMBABY\Desktop\FrogJumpCCs.ani"

I will send the next one in trying to explain how to embed the cursor for those who don't have the toolkit or don't want the toolkit.  the sender needs the toolkit to embed.

Robbie