Editing tools not making a selection

I'm having an issue where my editing tools, i.e. erase, change properties, move/scale/rotate, etc. are not allowing me to make a selection. My left click swaps the dialog box between the related command and "Layer name[dialog]:". When I right click while the layer name is in the box, the select layer menu opens and if I pick a particular layer and hit "Okay" that command is applied to that entire layer. I played around with the selection options in the Tools -> Options menu, and in the editing options menu, "Dynamic Cursor, bounding box for long redraws" is selected.

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