Works quite nicely thusly:
procedure TCamForm.Memo1Click(Sender: TObject);
begin
  memo1.TabStop := True; // gets the blinkin cursor
  memo1.Color := clWhite;
  CreateCaret(memo1.Handle, 0, memo1.Font.Size,memo1.Font.Size*2);
// memo1.Font.Size*2 (height should be double to look tiddly)
  SetCaretPos(0,0);
  ShowCaret(memo1.Handle);
end;


procedure TCamForm.Memo1Exit(Sender: TObject);
begin
  Memo1.modified := true;
  if (memo1.Lines[0] <> '') or (memo1.Lines.Count > 0) then memo1.Color :=
clwhite
  else memo1.Color := clGray;
  memo1.tabstop := False; // stops the blinkin cursor
  DestroyCaret;         // hide the carrot
end;


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