diff --git a/reactos/dll/win32/user32/windows/bitmap.c b/reactos/dll/win32/user32/windows/bitmap.c
index 17ff0d8b498..a3c6cf00e51 100644
--- a/reactos/dll/win32/user32/windows/bitmap.c
+++ b/reactos/dll/win32/user32/windows/bitmap.c
@@ -56,7 +56,7 @@ typedef struct
 
 #include "poppack.h"
 
-/* forward declerations... actually in user32\windows\icon.c but usful here */
+/* forward declarations... actually in user32\windows\icon.c but useful here */
 HICON ICON_CreateIconFromData(HDC hDC, PVOID ImageData, ICONIMAGE* IconImage, int cxDesired, int cyDesired, int xHotspot, int yHotspot);
 CURSORICONDIRENTRY *CURSORICON_FindBestIcon( CURSORICONDIR *dir, int width, int height, int colors);
 CURSORICONDIRENTRY *CURSORICON_FindBestCursor( CURSORICONDIR *dir, int width, int height, int colors);
@@ -265,7 +265,7 @@ LoadCursorIconImage(
       hIcon = CreateIconFromResourceEx((PBYTE)ResIcon,
                                        SizeofResource(hinst, hResInfo),
                                        Icon, 0x00030000, width, height,
-                                       fuLoad & (LR_DEFAULTCOLOR | LR_MONOCHROME));
+                                       (fuLoad & (LR_DEFAULTSIZE | LR_SHARED)) | LR_DEFAULTCOLOR);
 
       if (hIcon && 0 != (fuLoad & LR_SHARED))
       {
diff --git a/reactos/dll/win32/user32/windows/icon.c b/reactos/dll/win32/user32/windows/icon.c
index e6a32fd6cfd..49bec207748 100644
--- a/reactos/dll/win32/user32/windows/icon.c
+++ b/reactos/dll/win32/user32/windows/icon.c
@@ -98,13 +98,25 @@ ICON_CreateCursorFromData(HDC hDC, PVOID ImageData, ICONIMAGE* IconImage, int cx
    BITMAPINFO *bwBIH = (BITMAPINFO *)BitmapInfoBuffer;
    BITMAPINFO *orgBIH = (BITMAPINFO *)IconImage;
    ICONINFO IconInfo;
-   PVOID XORImageData = ImageData;
 
    IconInfo.fIcon = FALSE;
    IconInfo.xHotspot = xHotspot;
    IconInfo.yHotspot = yHotspot;
 
-   /* Create a BITMAPINFO header for the monochrome part of the icon */
+   /* Handle the color part of the cursor */
+   if (IconImage->icHeader.biBitCount == 1)
+   {
+      IconInfo.hbmColor = (HBITMAP)0;
+   }
+   else
+   {
+       FIXME("loading %d bpp color cursor\n", IconImage->icHeader.biBitCount);
+       IconInfo.hbmColor = CreateDIBitmap(hDC, &IconImage->icHeader, CBM_INIT,
+                                          ImageData, (BITMAPINFO*)IconImage,
+                                          DIB_RGB_COLORS);
+   }
+
+   /* Create a BITMAPINFO header for the monochrome part of the cursor */
    bwBIH->bmiHeader.biBitCount = 1;
    bwBIH->bmiHeader.biWidth = IconImage->icHeader.biWidth;
    bwBIH->bmiHeader.biHeight = IconImage->icHeader.biHeight;
@@ -127,29 +139,13 @@ ICON_CreateCursorFromData(HDC hDC, PVOID ImageData, ICONIMAGE* IconImage, int cx
    bwBIH->bmiColors[1].rgbRed = 0xff;
    bwBIH->bmiColors[1].rgbReserved = 0;
 
-   /* Load the AND bitmap */
+   /* Load the monochrome bitmap */
    IconInfo.hbmMask = CreateDIBitmap(hDC, &bwBIH->bmiHeader, 0,
-                                     XORImageData, bwBIH, DIB_RGB_COLORS);
+                                     ImageData, bwBIH, DIB_RGB_COLORS);
    if (IconInfo.hbmMask)
    {
       SetDIBits(hDC, IconInfo.hbmMask, 0, IconImage->icHeader.biHeight,
-                XORImageData, orgBIH, DIB_RGB_COLORS);
-   }
-
-   if (IconImage->icHeader.biBitCount == 1)
-   {
-      IconInfo.hbmColor = (HBITMAP)0;
-   }
-   else
-   {
-      /* Create the color part of the icon */
-      IconInfo.hbmColor = CreateDIBitmap(hDC, &IconImage->icHeader, 0,
-                                          XORImageData, orgBIH, DIB_RGB_COLORS);
-      if (IconInfo.hbmColor)
-      {
-         SetDIBits(hDC, IconInfo.hbmColor, 0, IconImage->icHeader.biHeight,
-                   XORImageData, orgBIH, DIB_RGB_COLORS);
-      }
+                ImageData, orgBIH, DIB_RGB_COLORS);
    }
 
    /* Create the icon based on everything we have so far */
diff --git a/reactos/subsystems/win32/win32k/eng/mouse.c b/reactos/subsystems/win32/win32k/eng/mouse.c
index 24d866ba434..f722669697d 100644
--- a/reactos/subsystems/win32/win32k/eng/mouse.c
+++ b/reactos/subsystems/win32/win32k/eng/mouse.c
@@ -426,7 +426,8 @@ EngSetPointerShape(
     }
     else
     {
-        pgp->XlateObject = pxlo;
+        pgp->XlateObject = EngAllocMem(0, sizeof(XLATEOBJ), TAG_XLATEOBJ);
+        memcpy(pgp->XlateObject, pxlo, sizeof(XLATEOBJ));
     }
 
     /* Create surface for saving the pixels under the cursor. */