Fonteffects in PSP
I hope you are able to follow my instructions :) You can download a free trial version of Animation Shop at jasc.com

See picture 1
Open a new animation on Animation Shop.(press CTRL+N)

See picture 2
Change the numbers and settings as shown above (it's important that you use 32x32 so the cursor looks nice when we're finished.

See picture 3
Now draw your cursor or paste a picture into your animation. You can also animate it if you want.

See picture 4
Use "Save picture as..." or press F12, when you're finished and satisfied with the cursor.

See picture 5
Now use the ".ani"-type and name your cursor. Then click on Save. Now your cursor is finished and ready for use :)