Something that really ought to be fixed is to set the active pixel (or whatever it's called) to the very tip of the cursors. As it is, it's about 5 pixels down, 5 pixels right from where it should be.
This applies to pretty much all of the cursor-icons. This is quite annoying when performing tasks where precision is required.
Going back to default cursor in the mean while.
The next version will fix this problem (soon).
One problem I notice with cursors (this is under gnome+metacity) is that the resize cursors do not work. When I resize windows it uses the default x11 cursor instead of the theme. I think this is the same with any theme. I also noticed if the lila-cursors directory contained all that other stuff (not just a cursors directory), then metacity would crash ONLY when I tried to resize a window. Any ideas? Again, I don't think it is this theme, I think it is a metacity proble
I've noticed the resizing issue, as well. I'll look into it. As for the crashing, theming cursors in x seems to be rather unstable. Some themes work well, others don't. I've also found that by simply renaming the theme that you get different results (i.e., changing the name of the theme directory, as well as in the index.theme file). Try changing the name to lilacursors instead of lila-cursors.