Hi, Don. I got around to working on that VI and have attached it here. It seems to work as you described. I haven't commented it, so let me know if you have any questions about why things are implemented a certain way.
It does seem that the cursor position info for the Cursor Move event is bogus, but I didn't look into it much. I'd avoid using that and use a property node instead whenever you want to get the X,Y position of a cursor.
J
Jason King
LabVIEW R&D
National Instruments