I'm trying to get a texture tied to AbsoluteMouse but it seems I'm missing something.
The texture is ok, I tried it with TestAbsoluteMouse from jmetest. What I try is to switch between RelativeMouse and AbsoluteMouse. The switch itself works just the texture is not visible.
That is the MouseHandler I use:
http://cvs.world-of-mystery.de/cgi-bin/cvsweb.cgi/wom/src/de/worldofmystery/client/input/WomMouseHandler.java
The loadMouseCursor2() is the one I used initially, the loadMouseCursor() is a copy from a HudNode class.
Is it one of these updateXXX() functions again?
I already do that:
public void setMouseCursor() {
if (! mouseCursorLoaded)
loadMouseCursor();
setMouse(absoluteMouse);
absoluteMouse.updateRenderState();
absoluteMouse.updateGeometricState(0,true);
_log.info("setMouseCursor() absoluteMouse: "+absoluteMouse.getImageWidth()+"x"+absoluteMouse.getImageHeight());
removeAction(mouseLook);
isMouseLook = false;
}
as far as i know you don't have to set the texture coordinates (at least i don't do and it works) and you might want to try some other alpha function combination (i actually don't understand how they work - the wiki misses that information - but i know some combinations didn't work for me) 
Have a look at TestAbsoluteMouse - test if it works for you then have a look what's the difference (it is pretty short).