Code

Shape currentShape;

void diagramView_DragOver(object sender, DragEventArgs e)
{
	e.Effect = DragDropEffects.Copy;
	var draggedShape = e.Data.GetData(typeof(DraggedShape)) as DraggedShape;
	if (draggedShape != null)
		currentShape = Shape.FromId(draggedShape.Id);
}

void shapeBar_GiveFeedback(object sender, GiveFeedbackEventArgs e)
{
	if (e.Effect == DragDropEffects.Copy && currentShape != null)
	{
		e.UseDefaultCursors = false;
		var image = currentShape.Image;
		if (image != null)
			Cursor.Current = new Cursor(image.GetHicon());
		return;
	}

	e.UseDefaultCursors = true;
}