This is the documentation for Pano2VR 4. You can find the new documentation for Pano2VR 5 here.
A cursor image is an array of different cursor bitmaps that are stored within an image with an alpha channel. The cursors have been recreated from the QuickTime cursors. Each cursor bitmap is 32×32 pixel with the actual mouse position is in the center. You can download the Photoshop file with guides for the cursor positions here.
The custom cursor works only with Flash 9 or later.
Flash Output Settings (Pano2VR)