@benny1967
Both ways work
-Hold stylus on screen and wait for popup
-->when popup is on screen then move stylus to frame of popup so that nothing is selected. If you move it outside of popup then it vanishes

-Hold stylus on screen and let it stay there and select item

btw. Screen selection seems to react bit differently to finger and stylus.
Also you can test how it works by just keeping your finger on screen and slightly tilting head of your finger. It selects first item really easily..at least on my N900.

But in the end it´s not easy as it should be. To me it means that I have to concentrate on really simple task and it works 90% time which means that I do not relay on it as it should be 100% safe.