myMagCursor = new Cursor("../Resources/magnify.cur");

//In Visual Studio:
//        1. Select the cursor file in the Solution Explorer
//        2. Choose View->Properties.
//        3. In the properties window switch "Build Action" to "Embedded"

myMagCursor = new Cursor(GetType(), "magnify.cur");

namespace Piccolo.Forms
{
    public partial class Hanger
    {
    ...
        Assembly asm = Assembly.GetExecutingAssembly();
        using( Stream resStream = asm.GetManifestResourceStream("Piccolo.magnify.cur") )
        {
            myMagCursor = new Cursor( resStream );
        }

canvas1.Cursor = new Cursor(Assembly.GetExecutingAssembly().GetManifestResourceStream("WpfApplication2.mallet.cur"));

String[] resourceNames = Assembly.GetExecutingAssembly().GetManifestResourceNames();

using (MemoryStream ms = new MemoryStream(Properties.Resources.magnify))
{
  myMagCursor = New Cursor(ms);
}

this.Cursor = new Cursor(new System.IO.MemoryStream(Properties.Resources.arrow_i));