Hi Bob. I cheat...I use Instant Scenery by Flight 1. It will place scenery in either FSX or FS 2004 while you're looking at what you're placing. I think it was around $30.00, but it's worth every cent. The Object Placement Tool out of the SDK is one of the user un-friendliest interfaces known to modern man.
Also, ADE by John "Scruffyduck" Masterson will place objects as will Whisplacer by Lamont Clark. I don't believe that either of those two will give you WYSIWYG placement.
Best,
Jim