There is little driver involvement to support animated cursors. If the driver sets the C1_COLORCURSOR bit in the dpCaps1 field of the GDIINFO structure, this also implies that the driver can handle an animated cursor. Windows 95 implements cursor animation by calling SetCursor with a new image at a set time interval. To handle cursor animation, a driver needs to insure that:
With previous versions of Windows, SetCursor could not interrupt MoveCursor or CheckCursor. This is no longer the case for animated cursors. SetCursor can now fail and return a 0 in the AX register. This is useful if, for example, the cursor is "busy" and the image cannot be changed.