I've tried so many methods and I still couldn't figure it out while using my handspring portable keyboard. Below were my experimentation.

1.) Tealmaster & LaptopHack
-- WARNING, please do not use this combination. It does not support OS 5.

2.) pToolsets
-- There are extensive range of module. One of them is called pPointer. It allowed me to launch a crosshair cursor by pressing an ESCAPE key designated by the preference settings. Unfortunately pToolsets did not detect the "ESC" key due to weird characters being sent by the keyboard.

So do you guys have any suggestion on how not to use the stylus when the portable keyboard is attached to my treo ? Agendus & shadowplan still do not have proper 5-way support yet