Here's a quick and easy way to make windows cursor transparent.
I did this mainly because I don't want any trace of windows on my carpc.
1. Download the attachment, it contain transparentCursor.cur
2. move it to %:\windows\cursors
3. go to control panel - mouse - pointers - browse - select transparentCursor.cur, press ok
4. you're done.
to get your cursor back, hit "use default"
for those who want to make their own transparent cursor, or any kind of cursor, this is the program that I used: