Animated cursors do not work due to virus.
Cause:
A virus may have infected the computer. Computer viruses are known to corrupt animated cursors.
Solution:
Use a third-party virus scan utility to check the computer for (and remove) viruses. If using a third-party .ANI file, try removing the file and reinstalling it. Also try replacing the supposedly bad .ANI file with one that works on another Windows 95 computer.