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From my tests, the tip of the cursor is roughly 2px off. In other words, it extends 2px further than it should.

I have seen some GUI items that act as a circle, but some don't. The close/minimize... buttons for example. They only function if you click within the circle. However, when the cursor is near them they highlight.

Text selecting in OW has suffered from similar inaccuracies. I don't know if that will change in 5.5.

I agree, the cursor should only select what the exact tip of it is on.