You need to do the following to get your cursor trails set up on your AOL hometown.
Step 1: Type in My FTP Space as an AOL keyword
Step 2: Click on See My FTP Space
Step 3: Double click on the filename of the directory you want to set up the cursor trail (i.e. myhomepage etc. Do not select images)
Step 4: Once you've opened the file name of the directory where the cursor trail will be set up, you should see all the files associated with that page. Click on the Upload icon at the bottom.
Step 5: On the screen that pops up, type in the name of one of the images you will be using for the cursor trail with a .gif behind it. For example, if one of the images you plan on using is called baby, type in baby.gif  (no spaces). Select the radio button that corresponds with binary. Press continue.
Step 6: Click once on Select File. Browse for the image with the corresponding name. The location will depend on wherever you saved it onto your hard drive. Once you have located the file, click on it once so that the name will appear on the filename text box. Select Open.
Step 7: Click on Send.

Your image will have now been uploaded to the corresponding directory.
If the cursor trail you will choose consists of only one image, then you're done with the uploading. If it consists of more than one image, repeat Steps 5-7 for each individual image.

Now, for the second part of this, you need to insert the JavaScript into your hometown page so that the images will follow the cursor around the page. Go to and select the Mouse Trails Effect link. They offer several different trail effect so take your time to look through and decide which is the best for you. Note here. AOL does not support any JavaScript that includes a tag in the head portion. That means that I'm not sure how to set up the Fade Away Cursor Trail Script.
Once you have decided on a script, copy the whole script and type in hometown as a keyword. Select Easy Designer. Select Open an Exhisting Page.  Select the page which will contain the cursor trail and click Open.  Once it is open, select Insert up at the top. From the drop down menu, click on Advanced HTML. Click on the blank space given and press Ctrl + V. Once the script has appeared, select OK. Make sure the box that reads HTML object in read is in the uppermost left corner. By clicking on the HTML box you can select it (four little boxes come out on each corner). By hovering over the bottom right corner and dragging it up and left you can greatly reduce the size of the html box so that it wont interfere with any of your other text or image boxes.
Select Save and then OK

You've set up a cursor trail on your page.