CursorXP

CursorXP, previous version of CursorFX, is a wonderful application that allows you to use and create great-looking cursors for Windows XP and 2000. With this program you will be able to change your plain default Windows cursors with animated cursors, with great effects and graphics.

Some of the available themes are bubblegum, candy cane, gear, hand, protools, and many others. The user interface is rather boring and simple, but it's really easy to use, making it very suitable for beginners. It integrates into the standard Mouse interface of Windows and can be easily enabled and disabled. Other useful features include semi-transparency, advanced shadows, alpha blending, and much more. In short, CursorXP is a compact but handy program to customize your desktop with amazing, great-looking cursors that will amaze your family and friends.
Note that this version is no longer available for download, but here you can get the latest one which includes enhanced features and more powerful options.