Don't ask questions, but basically my game has a lot of mouse cursors chasing the player's cursor.
I have a tiny little cursor image with a black background which I've been using, but the problem is that it's simply not in the shape of a cursor. There are the tiny little corners, and when multiple cursors overlap, they get partially hidden by the black portion which is the .png's background.
How can I cut out the cursor image and have an actual cursor shape, thus allowing for more accurate visual overlapping and more accurate collisions?
Use a good image editor (GIMP will do) and set the background to be transparent. Transparency is one of the features carried over from the old Compuserve GIF. The image will still be square/rectangular but your user won't "see" the transparent pixels.