Hi Mike, the Edit frame is the name for the sizing and rotation grips that surround the selected object:
http://moi3d.com/3.0/docs/moi_command_reference11.htm#editframe

You can use the edit frame to squish things down flat. But generally it's not a good idea to squish individual surface points down on top of each other, stacked up control points can degrade some of the mathematical properties of a surface.

If you want to do a lot of surface control point manipulation you might look into using a polygon sub-d modeling program instead of a CAD program like MoI. Sub-d programs are really focused on that type of object manipulation. MoI is more focused on generating things from 2D curves. Although there is some support for surface point cage manipulation in MoI it's just not a focus area for it.

- Michael