The cursor then falls under their control. And finally, while in data collaboration mode, there is only one cursor among all machines in the conference. We don't like it, we may report it. It doesn't seem to be a reasonable feature at this point - perhaps a configuration shortcoming and hopefully not a part of the standard. Notice that it is now unchecked.
Application sharing is turned off similarly.
At this point the participants can continue their conversation or hang up as usual. You will need to restart your client before the change actually takes effect. Either person can establish application sharing. The NetMeeting window will initially appear as something like At this point, no sharing or collaboration is taking place. Clicking on either will show which applications are available for sharing or collaborating.