Yeah that is the exact behavior I saw in the forums before. After inserting isoparms the manipulator freezes. I use nurbs alot and do not eer recall seeing this so I will have to do some research to see what causes it.
Have you tried rebuilding the surface using the cv's checkbox and deleting history?
This is not a terrible solution as it would force you to reparameterize your mesh and I am just looking for anything that might affect the behavior you are seeing.
"If I have seen further it is by standing on the shoulders of giants." Sir Isaac Newton, 1675