Problem making .cur file with Photo shop

Question

Basically I am Stack OverFlow user, this is my first post here. I am trying to make .cur (cursor) file with the help of Adobe PhotoShop CS5. I downloaded the plugin, but when i make .cur file of an image, I can see Extra white space with the icon,

Something like this :

As you can see, i dont want the rest 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 came out to be something like this:

What grid is this?How can i get this? Is this grid important to make .cur files,or my solution lies somewhere here?Sorry, i am a newbie in Graphic Design .Thank You:)

Answer 1

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 View → Show → Pixel Grid

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

Answer 2

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