Most of things suggested above I had read before or tried before. After the last post I found the low-tech solution to the high-tech problem.
Like so many others I have an iPhone and a pocket size point and shoot digital camera. I had scratched the viewfinder on the camera because it didn't have a protective plastic covering, and when I got the iPhone I made sure I had all the scratch-proof protection I could get. It drives me nuts to scratch something new...or old...it's just one of those hang ups, and probably a good one. After scratching the camera I've had a big concern about keeping my other view finders protected.
Same with the Kindle and now you can figure out the rest of the story. I wouldn't take the plastic protective covering off till I found something to put the Kindle in to protect it. So...the toggle didn't work right because the plastic protector was still over it. Every time I "toggled" it, it was like pressing it down. To me it felt like I was moving it correctly, but this didn't transfer properly to the device itself. Once I took the plastic off I then discovered instantly how it works.
Now, I have it registered, the books have been transfered from PC to Kindle2, I can scroll, I can use the search feature, and I'm actually loving the thing now.
I'm going to see about a cover to put the whole device in. I still have this hang-up about scratching it, but after this episode I'm not sure I can find anything other than putting the original plastic film back over it and just cutting out a small hole for the toggle switch.
Now, back to the instructions to see if it will cut and paste.
Thank you all for your suggestions and patience. No wonder I was having trouble the rest of you weren't. It all centered on the toggle that wouldn't work because of the plastic film protector. Now I can actually spend a little time reading and learning the rest of it.
I wanted to be sure to mention this, as nutty as it sounds, because I'm guessing someone else is, or will be, going through the same scenerio. So, the next time we see a newbie poster with a similar problem, we can make sure they have taken the cover off!
Or at least cut out an opening for the toggle switch.
Thanks again.