I've been trying to get Postgres to return a cursor as a ResultSet for a long time. I've seen that they can be returned as strings, and then a second query can be issued with the "FETCH ALL IN "<unnamed cursor 1>" syntax in a standard JDBC PreparedStatement.executeQuery(). Obviously, it would be much better to get the ResultSet in one query. However, I tried your example (after fixing the many typos in your stored procedures and Java code), but the JDBC driver throws this exception:
Exception in thread "main" No class found for refcursor
This is using PostgreSQL 7.3.4 with its supplied JDBC driver. What version did you write this support for?