The way of using an inventory item is to drag it across a hotspot.
All my inventory items are .ICO files, 32 pixels at longest edge, which look perfect when in the inventory. However when I left-click-drag them from the Inventory, and they thus become a cusror, the cursor always distorts the ICO image into a square item in a distorted aspect-ratio, longest edge shortened and shortest edge stretched to match the square.
Anybody know why this is?