Solution:

A cursor will only be generated in a WinCE system if a mouse is attached to the system. Since the intent of CE devices was really to have single purpose machines run with a touchscreen, a cursor really wasn't necessary. To update the position of the cursor with the touchscreen, your application will have to implement a cursor. If you are trying to build a CE box with multiple applications, each of them will have to draw their own cursor. The logic is probably there in the application to implement the cursor but your programmmers will have to turn it on. Regarding the version of the CE driver kit, the WINCEX86.EXE file on the web site is the most current version.