How are you doing it in Windows 2000? Are you making a system call to shut off the cursors?
There is a palette of cursor manipulation (Application Control -> Cursor or just do a palette search for "Cursor"). These VIs let you set the cursors, but I don't see an easy way to turn it off. A work-around might be to have a blank cursor in a cursor file and change the cursor to that. It will still have a click response (hot spot), so it does not keep the user from using the cursor, just seeing it.