hi CursorLine

I have the following code in my _vimrc

colorscheme xoria256
hi CursorLine gui=underline guibg=NONE term=underline cterm=underline
set cursorline

The issue that I'm having is that it doesn't work when vim is reopened or the _vimrc is sourced. However if I manually set it using

hi CursorLine gui=underline guibg=NONE

it starts to work. The default setting of xoria256 is

hi CursorLine ctermbg=237 guibg=#3a3a3a cterm=none gui=none

Does anybody know what is the problem? Why it doesn't work when it is in the _vimrc but works when it is set manually?

Any help is appreciated.

I'm using Windows XP Pro 2002 SP3
gVim 7.3

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