bace135 in the house tonight!
Since: Jan 28, 2003
The pencil is for drawing new midi notes in the piano roll area (the grid with piano keys to the left).
To change the parameters of a note, like changing position (where it starts) or the length of the note you will need to use the arrow tool (not sure the official name but the button looks like an arrow pointer). You also should make sure you are in piano roll mode. Using the arrow tool, click on the note you would like to move and drag it. Release the mouse once you've moved it where you want to place it. Tip: Holding shift while moving the note will keep it in place either vertically or horizontally depending on which way you want to move the note. To extend the length of the end of a note, click on a note (select it) and then position the arrow around the right end of the note and the cursor should change appearance. Click and drag the mouse until you have the appropriate length of the note. Also, as far as I know, you can't drag the beginning of the note to extend it to the left.
To change the velocity of a note, use the pencil tool, and draw the velocity with the vertical bars that appear below the piano roll area.
You can make other midi automations to different parameters by choosing the parameter from one of the menus at the top of the page (don't remember what it's called off the top of my head) and selecting it. Then you can draw the automation with the pencil tool, and adjust it with the arrow tool.
If you need any further assistance, let me know.