I've found a solution to using a native mouse cursor for ogre. I'm going to use wxWidgets & Ogre together by passing a pointer to the wxWindow into the createRenderWindow as a param titled "externalWindowHandle".
This approach is available as a non working sample from the source based release of ogre. Also more recently used in the Mage project to create a visual scene editor for Ogre.
I initally used the main window hWnd to create the ogre render window but found that the screen coordinates were offset by the toolbar and could not be corrected. So instead I opted to use a nice window manager wxAui that provide dockable draggable windows elements like an IDE.
Here is a screenshot of my current network editor the toolbar is not wired but picking works allowing the adding and moving of nodes.
