you could keep track of the mouse point in a global variable and then update it when the mouse moves:
Code:
Dim ptMouse as New Point(0,0)
Public Sub myForm_MouseMove(Byval sender as Object, Byval e as MouseEventArgs) Handles MyBase.MouseMove
pt.X = e.X
pt.Y = e.Y
End Sub
now draw the image at the the coordinates stored in ptMouse
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