Index: subsystems/win32/win32k/ntuser/cursoricon.c
===================================================================
--- subsystems/win32/win32k/ntuser/cursoricon.c	(revision 40359)
+++ subsystems/win32/win32k/ntuser/cursoricon.c	(working copy)
@@ -1405,7 +1405,6 @@
    BOOL Ret = FALSE;
    HBITMAP hbmMask, hbmColor;
    BITMAP bmpMask, bmpColor;
-   COLORREF oldFg, oldBg;
    BOOL DoFlickerFree;
    SIZE IconSize;
 
@@ -1413,8 +1412,10 @@
    HGDIOBJ hOldOffBrush = 0;
    HGDIOBJ hOldOffBmp = 0;
    HBITMAP hbmOff = 0;
-   HDC hdcMem = 0;
-   HGDIOBJ hOldMem;
+   HDC hdcMemMASK = 0;
+   HGDIOBJ hOldMemMASK = NULL;
+   HDC hdcMemIMAGE = 0;
+   HGDIOBJ hOldMemIMAGE = NULL;
    BOOL bAlpha = FALSE;
 
    hbmMask = pIcon->IconInfo.hbmMask;
@@ -1452,7 +1453,8 @@
       PFN_DIB_GetPixel fnSource_GetPixel = NULL;
       INT x, y;
 
-      //Find alpha into icon
+      //In order to correctly display 32 bit icons Windows first scans the image,
+      //because information about transparency is not stored in any image's headers.
       psurfOff = SURFACE_LockSurface(hbmColor ? hbmColor : hbmMask);
       if (psurfOff)
       {
@@ -1549,61 +1551,62 @@
    else
        hdcOff = hDc;
 
-   hdcMem = NtGdiCreateCompatibleDC(hDc);
-   if (!hdcMem)
+   if (diFlags & DI_IMAGE)
    {
-      DPRINT1("NtGdiCreateCompatibleDC() failed!\n");
-      goto cleanup;
+      hdcMemIMAGE = NtGdiCreateCompatibleDC(hDc);
+      if (!hdcMemIMAGE)
+      {
+         DPRINT1("NtGdiCreateCompatibleDC() failed!\n");
+         goto cleanup;
+      }
+      hOldMemIMAGE = NtGdiSelectBitmap(hdcMemIMAGE, (hbmColor ? hbmColor : hbmMask));
+      if (!hOldMemIMAGE)
+      {
+         DPRINT("NtGdiSelectBitmap() failed!\n");
+         goto cleanup;
+      }
    }
 
-   oldFg = IntGdiSetTextColor(hdcOff, RGB(0, 0, 0));
-   oldBg = IntGdiSetBkColor(hdcOff, RGB(255, 255, 255));
-
-   if (diFlags & DI_MASK)
+   //If diFlags DI_IMAGE and exists hbmMask, then always using mask for draw.
+   if (diFlags & DI_MASK || (diFlags & DI_IMAGE && hbmMask))
    {
-      hOldMem = NtGdiSelectBitmap(hdcMem, hbmMask);
-      if (!hOldMem)
+      hdcMemMASK = NtGdiCreateCompatibleDC(hDc);
+      if (!hdcMemMASK)
       {
-         DPRINT("NtGdiSelectBitmap() failed!\n");
+         DPRINT1("NtGdiCreateCompatibleDC() failed!\n");
          goto cleanup;
       }
 
-      NtGdiStretchBlt(hdcOff,
-                   (DoFlickerFree || bAlpha ? 0 : xLeft),
-                   (DoFlickerFree || bAlpha ? 0 : yTop), 
-                   cxWidth,
-                   cyHeight,
-                   hdcMem,
-                   0,
-                   0,
-                   IconSize.cx,
-                   IconSize.cy,
-                   ((diFlags & DI_IMAGE) ? SRCAND : SRCCOPY),
-                   0);
-
-      NtGdiSelectBitmap(hdcMem, hOldMem);
+      hOldMemMASK = NtGdiSelectBitmap(hdcMemMASK, hbmMask);
+      if (!hOldMemMASK)
+      {
+         DPRINT("NtGdiSelectBitmap() failed!\n");
+         goto cleanup;
+      }
    }
 
-   if(diFlags & DI_IMAGE)
+   if (hdcMemMASK || hdcMemIMAGE)
    {
-      hOldMem = NtGdiSelectBitmap(hdcMem, (hbmColor ? hbmColor : hbmMask));
-
-      NtGdiStretchBlt(hdcOff, 
+      GreStretchBltMask(hdcOff,
                    (DoFlickerFree || bAlpha ? 0 : xLeft),
-                   (DoFlickerFree || bAlpha ? 0 : yTop),
+                   (DoFlickerFree || bAlpha ? 0 : yTop), 
                    cxWidth,
                    cyHeight,
-                   hdcMem,
+                   hdcMemIMAGE ? hdcMemIMAGE : hdcMemMASK,
                    0,
-                   (hbmColor ? 0 : IconSize.cy),
+                   (diFlags & DI_IMAGE && hbmColor ? 0 : IconSize.cy),
                    IconSize.cx,
                    IconSize.cy,
-                   ((diFlags & DI_MASK) ? SRCINVERT : SRCCOPY),
-                   0);
-
-      NtGdiSelectBitmap(hdcMem, hOldMem);
+                   SRCCOPY,
+                   0,
+                   hdcMemIMAGE ? hdcMemMASK : NULL);
    }
 
+   if (hOldMemMASK) NtGdiSelectBitmap(hdcMemMASK, hOldMemMASK);
+   if (hOldMemIMAGE) NtGdiSelectBitmap(hdcMemIMAGE, hOldMemIMAGE);
+   if (hdcMemIMAGE) NtGdiDeleteObjectApp(hdcMemIMAGE);
+   if (hdcMemMASK) NtGdiDeleteObjectApp(hdcMemMASK);
+
     if (bAlpha)
     {
         BITMAP bm;
@@ -1673,9 +1676,6 @@
                     cyHeight, hdcOff, 0, 0, SRCCOPY, 0, 0);
     }
 
-   IntGdiSetTextColor(hdcOff, oldFg);
-   IntGdiSetBkColor(hdcOff, oldBg);
-
    Ret = TRUE;
 
 cleanup:
@@ -1687,7 +1687,6 @@
       if(hdcOff) NtGdiDeleteObjectApp(hdcOff);
    }
 
-   if(hdcMem) NtGdiDeleteObjectApp(hdcMem);
    return Ret;
 }