The hour glass is from

xlApp.Cursor = xlWait

The way to eliminate it is with the

xlApp.Cursor = xlDefault

I can't think why you would be getting a compile  error on this - especially
as the xlWait one clearly works OK.

Is it xlApp or xlDefault it thinks isn't defined? (It will highlight the
offender.)

I'm wondering if your 2002 problem is to do with your references. Go to
Tools/References in the VB environment. The ticked ones will all be at the
top. In my case, I have five ticked:

Visual Basic For Applications
Microsoft Project 10.0 Object Library
OLE Automation
Microsoft Office 11.0 Object Library
Microsoft Excel 11.0 Object Library

I'm using Project 2002 which is 10.0, but the rest of my Office is 2003
(11.0).

If you're using 2002 throughout, then you'll presumably need to be seeing
the 10.0 libraries ticked.

If you see "missing" against any of them, you know you've got a problem.
Untick those and find and tick the appropriate ones further down your list.
(Much further :-) it's an alphabetical list apart from the ticked ones..)