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I am trying to make a cursor with transparency using Photoshop CS5. When I make a .cur file from an image, I can see extra white space with the icon

Something like this: enter image description here

I don't want the outer white space. I just want the guitar to be the cursor, but here the cursor is the full image.

Out of curiosity, I just dragged an default computers .cur file, and in PS it looks like this:

enter image description here

What grid is this? How can I enable this? Is this grid important to make .cur files?

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up vote 2 down vote accepted

The grid you are seeing is just the Pixel Grid. It is helpful when working with very small resolutions (such as icons/cursors). You can enable or disable it with ViewShowPixel Grid

Pixel Grid

To make a cursor with transparency, I would follow the tutorial here

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If you only want the guitar, use the Pen Tool in Photoshop and cut it out so only the guitar remains.

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