diff --git a/Sources/Plasma/Apps/plClient/winmain.cpp b/Sources/Plasma/Apps/plClient/winmain.cpp
index 36ef2cf6..4efe1809 100644
--- a/Sources/Plasma/Apps/plClient/winmain.cpp
+++ b/Sources/Plasma/Apps/plClient/winmain.cpp
@@ -59,6 +59,7 @@ You can contact Cyan Worlds, Inc. by email legal@cyan.com
 #include "pfCrashHandler/plCrashCli.h"
 #include "plNetClient/plNetClientMgr.h"
 #include "plNetClient/plNetLinkingMgr.h"
+#include "plInputCore/plInputDevice.h"
 #include "plInputCore/plInputManager.h"
 #include "plUnifiedTime/plUnifiedTime.h"
 #include "plPipeline.h"
@@ -457,6 +458,26 @@ LRESULT CALLBACK WndProc(HWND hWnd, UINT message, WPARAM wParam, LPARAM lParam)
             }
             break;
 
+        case WM_SETCURSOR:
+            {
+                static bool winCursor = true;
+                bool enterWnd = LOWORD(lParam) == HTCLIENT;
+                if (enterWnd && winCursor)
+                {
+                    winCursor = !winCursor;
+                    ShowCursor(winCursor != 0);
+                    plMouseDevice::ShowCursor();
+                }
+                else if (!enterWnd && !winCursor)
+                {
+                    winCursor = !winCursor;
+                    ShowCursor(winCursor != 0);
+                    plMouseDevice::HideCursor();
+                }
+                return TRUE;
+            }
+            break;
+
         case WM_ACTIVATE:
             {
                 bool active = (LOWORD(wParam) == WA_ACTIVE || LOWORD(wParam) == WA_CLICKACTIVE);
diff --git a/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.cpp b/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.cpp
index fe0f4d5a..05830adc 100644
--- a/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.cpp
+++ b/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.cpp
@@ -750,27 +750,3 @@ bool plMouseDevice::MsgReceive(plMessage* msg)
     }
     return false;
 }
-
-
-
-void plMouseDevice::HandleWindowActivate(bool bActive, HWND hWnd)
-{
-    if ( bActive )
-    {
-        RECT rect;
-        ::GetClientRect(hWnd,&rect);
-
-//      rect.right /= plInputManager::GetInstance()->GetMouseScale();
-//      rect.bottom /= plInputManager::GetInstance()->GetMouseScale();
-
-        ::MapWindowPoints( hWnd, NULL, (POINT *)&rect, 2 );
-        ::ShowCursor( FALSE );
-        SetCapture(hWnd);
-
-    }
-    else
-    {
-        ReleaseCapture();
-        ::ShowCursor( TRUE );
-    }   
-}
diff --git a/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.h b/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.h
index 0a3b2df6..e03943a1 100644
--- a/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.h
+++ b/Sources/Plasma/PubUtilLib/plInputCore/plInputDevice.h
@@ -160,7 +160,6 @@ public:
     ~plMouseDevice();
 
     const char* GetInputName() { return "mouse"; }
-    void HandleWindowActivate(bool bActive, hsWindowHndl hWnd);
 
     bool    HasControlFlag(int f) const { return fControlFlags.IsBitSet(f); }
     void    SetControlFlag(int f) 
diff --git a/Sources/Plasma/PubUtilLib/plInputCore/plInputManager.cpp b/Sources/Plasma/PubUtilLib/plInputCore/plInputManager.cpp
index aa0a8d1c..d4593d62 100644
--- a/Sources/Plasma/PubUtilLib/plInputCore/plInputManager.cpp
+++ b/Sources/Plasma/PubUtilLib/plInputCore/plInputManager.cpp
@@ -584,8 +584,6 @@ void plDInputMgr::AddDevice(IDirectInputDevice8* device)
 void plDInputMgr::ConfigureDevice()
 {
     ::ShowCursor( TRUE );
-    ReleaseCapture();
-        
 
     DICOLORSET dics;
     ZeroMemory(&dics, sizeof(DICOLORSET));
@@ -607,8 +605,6 @@ void plDInputMgr::ConfigureDevice()
         fDI->fSticks[i]->fDevice->SetActionMap( fDI->fActionFormat, NULL, DIDSAM_FORCESAVE );
 
     ::ShowCursor( FALSE );
-    SetCapture(fhWnd);
-
 }
 
 bool plDInputMgr::MsgReceive(plMessage* msg)
diff --git a/Sources/Plasma/PubUtilLib/plPipeline/plDXPipeline.cpp b/Sources/Plasma/PubUtilLib/plPipeline/plDXPipeline.cpp
index d0c14736..00a67839 100644
--- a/Sources/Plasma/PubUtilLib/plPipeline/plDXPipeline.cpp
+++ b/Sources/Plasma/PubUtilLib/plPipeline/plDXPipeline.cpp
@@ -2247,7 +2247,6 @@ bool plDXPipeline::IResetDevice()
     {
         IClearShadowSlaves();
 
-        ReleaseCapture();
         Sleep(100);
         HRESULT coopLev = fD3DDevice->TestCooperativeLevel();
         if( coopLev == D3DERR_DEVICELOST )
@@ -2295,8 +2294,6 @@ bool plDXPipeline::IResetDevice()
             /// all device-specific stuff needs to be recreated
             plDeviceRecreateMsg* clean = new plDeviceRecreateMsg();
             plgDispatch::MsgSend(clean);
-
-            SetCapture(fSettings.fHWnd);
         }
         fDevWasLost = true;
         fDeviceLost = false;