diff --git a/src/servers/app/ServerApp.cpp b/src/servers/app/ServerApp.cpp
index 1ba7eda1db..f5a84559ce 100644
--- a/src/servers/app/ServerApp.cpp
+++ b/src/servers/app/ServerApp.cpp
@@ -91,6 +91,7 @@ ServerApp::ServerApp(Desktop* desktop, port_id clientReplyPort,
 	fClientTeam(clientTeam),
 	fWindowListLock("window list"),
 	fAppCursor(NULL),
+	fViewCursor(NULL),
 	fCursorHideLevel(0),
 	fIsActive(false),
 	fSharedMem("shared memory", 32768)
@@ -281,17 +282,29 @@ ServerApp::Activate(bool value)
 
 	fIsActive = value;
 
-	if (fIsActive)
-		SetCursor();
+	if (fIsActive) {
+		// Set the cursor to the application cursor, if any
+		fDesktop->SetCursor(CurrentCursor());
+		fDesktop->HWInterface()->SetCursorVisible(fCursorHideLevel == 0);
+	}
 }
 
 
-//! Sets the cursor to the application cursor, if any.
 void
-ServerApp::SetCursor()
+ServerApp::SetCurrentCursor(ServerCursor* cursor)
 {
-	fDesktop->SetCursor(fAppCursor);
-	fDesktop->HWInterface()->SetCursorVisible(fCursorHideLevel == 0);
+	fViewCursor = cursor;
+	fDesktop->SetCursor(CurrentCursor());
+}
+
+
+ServerCursor*
+ServerApp::CurrentCursor() const
+{
+	if (fViewCursor != NULL)
+		return fViewCursor;
+
+	return fAppCursor;
 }
 
 
@@ -928,6 +941,7 @@ ServerApp::_DispatchMessage(int32 code, BPrivate::LinkReceiver& link)
 		case AS_SET_CURSOR:
 		{
 			STRACE(("ServerApp %s: SetCursor\n", Signature()));
+
 			// Attached data:
 			// 1) bool flag to send a reply
 			// 2) int32 token ID of the cursor to set
@@ -941,13 +955,11 @@ ServerApp::_DispatchMessage(int32 code, BPrivate::LinkReceiver& link)
 
 			ServerCursor* oldCursor = fAppCursor;
 			fAppCursor = fDesktop->GetCursorManager().FindCursor(token);
-			if (fAppCursor != NULL) {
+			if (fAppCursor != NULL)
 				fAppCursor->Acquire();
-				fDesktop->HWInterface()->SetCursor(fAppCursor);
-			}
 
-			// TODO: This is wrong: We need to take view cursors into account here!
-			fDesktop->SetCursor(fAppCursor);
+			if (fIsActive)
+				fDesktop->SetCursor(CurrentCursor());
 
 			if (oldCursor != NULL)
 				oldCursor->Release();
@@ -1014,9 +1026,6 @@ ServerApp::_DispatchMessage(int32 code, BPrivate::LinkReceiver& link)
 			if (link.Read<bool>(&pendingViewCursor) != B_OK)
 				break;
 
-			if (fAppCursor && fAppCursor->Token() == token)
-				fAppCursor = NULL;
-
 			ServerCursor* cursor = fDesktop->GetCursorManager().FindCursor(token);
 			if (cursor) {
 				if (pendingViewCursor)
diff --git a/src/servers/app/ServerApp.h b/src/servers/app/ServerApp.h
index ee07f73851..37f84b46d2 100644
--- a/src/servers/app/ServerApp.h
+++ b/src/servers/app/ServerApp.h
@@ -61,8 +61,8 @@ class ServerApp : public MessageLooper {
 
 			void				SendMessageToClient(BMessage* message) const;
 
-			void				SetCursor();
-			ServerCursor*		Cursor() const { return fAppCursor; }
+			void				SetCurrentCursor(ServerCursor* cursor);
+			ServerCursor*		CurrentCursor() const;
 
 			team_id				ClientTeam() const;
 			const char*			Signature() const { return fSignature.String(); }
@@ -74,16 +74,16 @@ class ServerApp : public MessageLooper {
 
 			int32				CountBitmaps() const;
 			ServerBitmap*		FindBitmap(int32 token) const;
-	
+
 			int32				CountPictures() const;
 			ServerPicture*		CreatePicture(const ServerPicture* original = NULL);
 			ServerPicture*		FindPicture(const int32& token) const;
 			bool				DeletePicture(const int32& token);
-	
+
 			AreaPool*			AppAreaPool() { return &fSharedMem; }
-	
+
 			Desktop*			GetDesktop() const { return fDesktop; }
-	
+
 			BPrivate::BTokenSpace& ViewTokens() { return fViewTokens; }
 
  private:
@@ -123,6 +123,7 @@ class ServerApp : public MessageLooper {
 			BList				fPictureList;
 
 			ServerCursor*		fAppCursor;
+			ServerCursor*		fViewCursor;
 			int32				fCursorHideLevel;
 									// 0 = cursor visible
 
diff --git a/src/servers/app/ServerWindow.cpp b/src/servers/app/ServerWindow.cpp
index 4c77fc23ca..3043c6898c 100644
--- a/src/servers/app/ServerWindow.cpp
+++ b/src/servers/app/ServerWindow.cpp
@@ -590,7 +590,7 @@ ServerWindow::_DispatchMessage(int32 code, BPrivate::LinkReceiver &link)
 		}
 		case AS_SEND_BEHIND:
 		{
-			STRACE(("ServerWindow %s: Message  Send_Behind unimplemented\n", Title()));
+			STRACE(("ServerWindow %s: Message AS_SEND_BEHIND\n", Title()));
 			int32 token;
 			team_id teamID;
 			status_t status;
@@ -650,7 +650,7 @@ ServerWindow::_DispatchMessage(int32 code, BPrivate::LinkReceiver &link)
 		}
 		case AS_NEEDS_UPDATE:
 		{
-			STRACE(("ServerWindow %s: Message Needs_Update unimplemented\n", Title()));
+			STRACE(("ServerWindow %s: Message AS_NEEDS_UPDATE\n", Title()));
 			if (fWindowLayer->NeedsUpdate())
 				fLink.StartMessage(B_OK);
 			else
@@ -1240,7 +1240,9 @@ ServerWindow::_DispatchViewMessage(int32 code,
 		}
 		case AS_LAYER_SET_CURSOR:
 		{
-			DTRACE(("ServerWindow %s: Message AS_LAYER_CURSOR: ViewLayer: %s - NOT IMPLEMENTED\n", Title(), fCurrentLayer->Name()));
+			DTRACE(("ServerWindow %s: Message AS_LAYER_CURSOR: ViewLayer: %s\n", Title(),	
+				fCurrentLayer->Name()));
+
 			int32 token;
 			if (link.Read<int32>(&token) != B_OK)
 				break;
@@ -1253,7 +1255,7 @@ ServerWindow::_DispatchViewMessage(int32 code,
 				fDesktop->UnlockSingleWindow();
 
 				if (fDesktop->EventDispatcher().ViewUnderMouse(fEventTarget) == fCurrentLayer->Token())
-					fDesktop->SetCursor(cursor);
+					fServerApp->SetCurrentCursor(cursor);
 
 				fDesktop->LockSingleWindow();
 			}
diff --git a/src/servers/app/WindowLayer.cpp b/src/servers/app/WindowLayer.cpp
index 95634bfab1..c936434893 100644
--- a/src/servers/app/WindowLayer.cpp
+++ b/src/servers/app/WindowLayer.cpp
@@ -990,12 +990,7 @@ WindowLayer::MouseMoved(BMessage *msg, BPoint where, int32* _viewToken,
 	if (IsFocus()) {
 		// TODO: there is more for real cursor support, ie. if a window is closed,
 		//		new app cursor shouldn't override view cursor, ...
-		ServerCursor* cursor = ServerWindow()->App()->Cursor();
-
-		if (view != NULL && view->Cursor() != NULL)
-			cursor = view->Cursor();
-
-		fDesktop->SetCursor(cursor);
+		ServerWindow()->App()->SetCurrentCursor(view != NULL ? view->Cursor() : NULL);
 	}
 }