BUG: Cursor Does Not Update with Sr2Test and ICntOutl

After inserting an Sr2Test object within the in-place Outline sample application, cursor display is not handled correctly when the cursor is positioned over the in-place object.

Microsoft has confirmed this to be a problem in the Object Linking and Embedding version 2.01 Cl2Test application. We are researching this problem and will post new information here in the Microsoft Knowledge Base as it becomes available.

Steps to Reproduce

1. Launch ICNTROTL.
2. From the Edit menu, choose Insert Object.
3. Choose OleTest SrTest 2.0 Shape from the Object Type list box.
4. Choose OK.
5. Move the cursor over the in-place object.

The cursor should change from the flat plus-shaped cursor to the soccer- ball-shaped cursor.

As a comparison for correct behavior, insert an Sr2Test shape into Cl2Test. The cursor will update correctly when moved over the embedded object.