The default mouse pointer in Windows XP is relatively small and relatively subtle. For most people, it’s big enough. But if you have anything less than perfect vision, you may benefit from a bigger, brighter mouse pointer.
To see the alternatives and experiment with different pointers, open Control Panel and double-click the Mouse icon.
On the Pointers tab, click the drop-down list under the Scheme heading. The 3-D Bronze scheme, shown below, adds a touch of color to the pointer but doesn’t change its size.
To add motion and extra color to your mouse pointers, try the Windows Animated scheme. If you want bigger arrows and hourglasses, use the Magnified scheme with its thick borders, or choose the Large or Extra Large versions of the Windows Default, Windows Black, or Windows Inverted schemes.
Preview the pointers in the list at the bottom of the box and choose OK or Apply. (For an explanation of the difference between these two buttons, see this tip from the archives.)
Change your mind? Go back to the Mouse Properties dialog box and click Use Default.
Ed Bott 
You may also find this interesting:
http://www.soldaat.com/goodies/vippy/index.htm
Ed – as a matter of interest, how do you do the cut-away effect in your screenshots? I’d be interested to know.
Neil, I create those using Snagit 7 from TechSmith.
That’s great, but what if I want a pointer that radiates a colored ring from the pointer any time I click on the screen. I teach adults and sometimes they have a hard time seeing my pointer. Is there something out there that allows this type of animation to happen? Thanks!!