I\'m developing a custom HyperTerminal like application in a WinForms .Net 2.0 application. I have a multiline TextBox in a Panel in which you can interact with a hardware
I would use System.Drawing to draw a custom cursor (bitmap), maybe with a timer to let it blink like another cursor.
Get the current position of the Cursor in pixels and draw a bitmap over that cursor. Can be tricky to find the correct position, but should be doable.
Have a look here for Owner drawn textbox in winforms.