[tproffitt]

When I select to bring up the annotations window, I get two windows.  One is the regular larger one with all the Pen options to choose and a smaller one, which I do not know its use (has up, down, left and right arrows in it).  I've ended up just dragging it down to the bottom out of the way, but I was hoping there was a way of removing it.  I have attached a picture of this issue.

[Geoff Bacon]

The small one is the nudge tool; it is used to tweak the position of whatever item you are working on.

Just press the close (x) on it top line and it will disappear.
You can get it back again by pressing the down arrow in the top left corner of the screen.

I usually have it enabled by default; this allows me to quickly create some annotations (not caring too much whether they are positioned correctly) and then drag them to the appropriate area. The nudge tool can then be used to tweak the final position.

When you have more than one annotation, you might want to also enable the list; this allows you to see what annotations you have created and select and/or delete them

Geoff

[Zubersoft]

That is the nudge tool. If you tap an annotation to select it, then tap or hold on those arrows, it lets you make slight adjustments to the annotation's position (which can be difficult to do with a finger at the moment because there isn't magnification to show what's under your finger). If you don't need the nudge tool, or the toolbox, tap on the circle at the top left, and deselect the options you don't require.

Mike

UPDATE:
I was too slow! Geoff's answer is great.

[tproffitt]

The small one is the nudge tool; it is used to tweak the position of whatever item you are working on.

Just press the close (x) on it top line and it will disappear.
You can get it back again by pressing the down arrow in the top left corner of the screen.

I usually have it enabled by default; this allows me to quickly create some annotations (not caring too much whether they are positioned correctly) and then drag them to the appropriate area. The nudge tool can then be used to tweak the final position.

When you have more than one annotation, you might want to also enable the list; this allows you to see what annotations you have created and select and/or delete them

Geoff

Thanks Geoff.  I will now play with it since I know what it does now.  Is there a way to disable it by default? 
Tim

[Geoff Bacon]

Once you have closed it, it won't show until you re-enable it using the top left icon.
I usually find I accidentally close it when trying to nudge up (or is it right?); I have FFS ("fat finger syndrome)"

Just play with it to see what you can and can't do - you won't "break" it.

Geoff