I've changed your timer event slightly:
Code:
Private Sub tmrtext_Timer()
    Dim lX, lY
    Dim point As POINT_API
    Dim iDiffX%, iDiffY%
    
    iDiffX = Me.Width - Me.ScaleWidth - 5 * Screen.TwipsPerPixelX
    iDiffY = Me.Height - Me.ScaleHeight
    GetCursorPos point
    lX = ScaleX(point.x, vbPixels, Me.ScaleMode)
    lY = ScaleY(point.y, vbPixels, Me.ScaleMode)
    ' Screen.TwipsPerPixelY
    lblDrawText.Left = lX - Me.Left - iDiffX 
    lblDrawText.Top = lY - Me.Top - iDiffY
End Sub
The problem is that with GetCursorPos you get the mouse position counted from the upper left position of the screen and that may not be where your form is positioned.

Good luck!

[Edited by Joacim Andersson on 08-04-2000 at 04:01 AM]