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I have a problem with your method:

When I click first after turning on the Touch up Object Tool, Acrobat selects another object:

first click.jpg

The only way for me to do any thing else (i.e. select S) is to press Delete which deletes the object it selects:

after deleting object.jpg

As you can see from the above image, that the formating is spoiles now (there are lines under and above "Ability to communicate").

Now when I click again, it selects another object:

second click.jpg

Deleting this other object doesnt seem to ruin any formatting, but I still have to do it in order to select the S.

Any suggestions? What am I doing wrong?  Why is it doing this?

Here is the file:

http://www.mediafire.com/?nwjw5gmtmyt