I am tring to create a simple bouncing ball. I create a nerbs sphere.

Now I want the ball to be squashed at the bottom of the bounce so I choose deform > create > Nonlinear squash.

Next I choose the "Show Manipulator Tool". Now the handle is green and I see blueish dots for the handle. However I cannot select the blue dots with any mouse button to move the squash. I can alter the squash through the chanel box using the "factor". This does alter the shape of the ball, but I cannot change select the handles with the mouse. Color does not change to yellow, and they do not move.