Did you run nmake in the same command window that you ran vcvars32.bat ?

before you run the nmake run vcvars32.bat from the bin directory from where ever you installed visual studio.

Looks like eq_freak is on the right track to me.

About a year or so ago back before I discovered detours I wrote a wrapper DLL for direct input for use in a beta game I was testing. It was trivial to inject a mouse click or any other key press for that matter. Where the cursor is, is another matter.