In 3.1.46, that darned widget or ball thing (I don't know what it's called) used now to position a texture or label is really frustrating. It's so big it actually hides the label I'm trying to position, and the lower arrow goes into the menu bar so you can't easily access it. Would be great if KS went back to the old way of simply clicking on it (on the model) and moving it where you want it. Labels and textures are becoming way too complicated.
Bill G
With the mapping tool open, you should see a "position" button, click this to enable the simple method of clicking where you want the label to be.
As for the manipulator being too big, you should be able to zoom in to make the manipulator relatively smaller.