Camtasia Studio – Black Box Mouse Cursor on Playback of .camproj File

Symptom:

When you double-click a .camproj file and play it in Camtasia Studio, the mouse cursor is a black box.

Resolution:

If your display settings are in 16-bit color mode, change them to 32-bit color.

Windows XP: Right-click the desktop and hit Properties, go to the Settings tab. Under “Color quality”, change the drop-down from “Medium (16 bit)” to “Highest (32 bit)”.
Windows 7: Right-click the desktop and hit Screen Resolution, then Advanced settings, and click the List All Modes button. Choose the one with the same resolution as your current screen resolution but with “True Color (32 bit)”.