RealWorld Cursor Editor is a free program that allows you to create your own Windows cursors or modify existing ones. You can either design your own cursor from scratch or load an existing one and modify it and apply the changes. Newly created cursors can then be applied through Windows Control Panel mouse pointer setting application.
RealWorld Cursor Editor consist a set of powerful editing tools similar to ones you will find in a image editing application. There is the lasso tool, magic wand, rotation, image transformation, layers, and layer effects like bevel and drop shadow. In fact, it is an image editing program of a sort - only difference is that it saves the end result in the Windows cursor format (CUR/ANI/RCU).
RealWorld Cursor Editor supports both static and animated cursors. Animated cursors are made up of a number of static frames running in a loop. Each frame can be edited individually and animation speed adjusted. Using the program you can also change cursor hot spot by clicking on a pixel in raster editor or by specifying the coordinates.
RealWorld Cursor Editor can also convert CursorXP files to normal cursors. And you can even import Linux cursors available in XCursor format and convert it to Windows format.