In case you were looking for some info on that system SP - it's available only via OLE and ODBC connections. It's mostly documented under API cursors or OLE DB, and NOT under SQL Server.

Some intro info:

http://msdn2.microsoft.com/en-us/library/ms187088.aspx

http://msdn2.microsoft.com/en-us/library/ms189546.aspx

http://msdn2.microsoft.com/en-us/library/aa172588(sql.80).aspx

That being said - from what those documents mention that sp_CURSOR is ALWAYS invoked as part of mapping fields from an OLE DB source to SQL Server, so I am not sure there is an issue IN that system stored proc (since the import works to a simple table).