I think I would create the cursor out of two MovieClips, like mc_cursorGraphic as the main mc, and mc_cursorArea nested inside this. The latter has a smaller area of course. When you check for droptarget or whatever method you choose, point to mc_cursorGraphic.mc_cursorArea
Hope this can be of any use.
Not everything that can be counted counts, and not everything that counts can be counted.
nice idea. What I ended up doing was just moving the graphic down within the mc so that the live area that was already there was actually centered over that certain point. This way, no additional coding was necessary. But, I think I'll try your idea anyway. Thanks!