Public Class Form1

    Private Sub Form1_MouseMove(ByVal sender As Object, ByVal e As System.Windows.Forms.MouseEventArgs) Handles Me.MouseMove
        Dim myBitmap As System.Drawing.Bitmap
        Dim myGraphics As Graphics

        mybitmap = New System.Drawing.Bitmap("f:\Dads Work\Project Pictures\turn2.bmp")
        myGraphics = Graphics.FromHwnd(ActiveForm().Handle)
        myGraphics.DrawImage(myBitmap, e.X, e.Y, 25, 25)
    End Sub
End Class

Public Class Form1
    ' Private member variable to hold our graphic (instead of reloading it each time, more efficient)
    Private myBitmap As System.Drawing.Bitmap

    ' Upon loading of the form, load up our bitmap
    Private Sub Form1_Load(ByVal sender As System.Object, ByVal e As System.EventArgs) Handles MyBase.Load
        myBitmap = New System.Drawing.Bitmap("C:\mypic.jpg")
    End Sub


    ' When we move across the form, set our invisible panel to visible and move the panel using its left
    ' and top properties, but about 3 pixels off so that it won't fail to move when we attempt to move the mouse
    ' backwards onto the panel.
    Private Sub Form1_MouseMove(ByVal sender As System.Object, ByVal e As System.Windows.Forms.MouseEventArgs) Handles MyBase.MouseMove
        mypanel.Visible = True
        mypanel.Left = e.X + 3
        mypanel.Top = e.Y + 3
    End Sub

    ' Using our graphics object of the panel, we paint on the picture into the top left corner and size it accordingly
    Private Sub mypanel_Paint(ByVal sender As System.Object, ByVal e As System.Windows.Forms.PaintEventArgs) Handles mypanel.Paint
        e.Graphics.DrawImage(myBitmap, 1, 1, 25, 25)
    End Sub
End Class

Private Sub Form1_MouseMove(ByVal sender As System.Object, ByVal e As System.Windows.Forms.MouseEventArgs) Handles MyBase.MouseMove
        mypanel.Visible = True

        if followmouse then
                mypanel.Left = e.X + 3
                mypanel.Top = e.Y + 3
        end if
End Sub