If I install a virtual machine additions package on a virtual machine, (e.g. Virtual Machine Additions for Microsoft Virtual PC 2007, Integration Components on Windows Virtual PC, and Guest Additions on Oracle VM VirtualBox), what happens in the backend on the virtual machine when I enable integration features like mouse pointer integration, window resizing, and folder sharing? In other words, how are integration features internally implemented?
For mouse pointer integration, in Virtual PC, with integration features enabled, the mouse moves much faster, and, on the bottom and right edges, parts of the guest cursor are visible on the outside. With it disabled, the cursor moves more slowly. My suspicion is that with integration enabled, the cursor is actually a part of the host OS, and it sends the commands to the guest. I've heard reports that installing integration software on a host PC causes my cursor to disappear. I also know that shared folders are implemented as network drives. Am I right?
I'm looking for an answer that discusses each integration feature specifically and how it is implemented in several popular emulators, with authoritative references.