I don't know what's wrong with the Terraformer but I know on W7 64 bit and/or on ATI cards (I think its just ATI cards), the selection gets love up on NL's editor where the point you click at registers at a point a few pixels directly above or below where you actually clicked. When clicking and dragging, the drag box will be the same distance above or below the cursor. This tends to happen when switching between 2D and 3D views and can be corrected on a case-by-case basis by restoring and maximizing again or by any other action that adjusts the window size. (The quickest way, if you're fullscreened, is to just drag the title bar down and back up.) The only "permanent" way to fix this is to use a non-Aero theme. (You can look around the internet if you can't stand the default sky blue.)