XCursor Transparent Theme Readme. - Matthew Allum 2003
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Introduction
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This package contains a totally transparent X11 Cursor theme. Using
the theme provides an effective and flexible way to hide the X11
Cursor. This kind of behaviour maybe required on Handheld computers
running the X Window System.


Usage
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For the theme to work you need an XServer with the XCursor Extension
support and the XCursor client library. XFree86 4.3 or above provides
these dependencies.

Firstly build and install the package ( ./configure; make; make install ).

Then to set the cursor theme to be the default, you need to create an
index.theme file which will be read by the XCursor library. The file
informs XCursor what theme to use.

Create the file "~/.icons/default/index.theme" with the following 
contents;

[Icon Theme]
Inherits=xcursor-transparent


If you set a configure --prefix to anything other than /usr, you may
then need to do a; 

   ln -s $PREFIX/share/icons/xcursor-transparent ~/.icons/xcursor-transparent  

Where $PREFIX is what ever you used for the configure --prefix. 

You will then need to restart X for the cursor to take effect. 


Also see http://www.cs.umn.edu/help/linux/xcursor.html for more infomation.