I think that somehow the selection grips are not active. There should be 8 selection grips on the corners and in the middle of selection borders. Did you turnoff this somehow? I think this will be resolved if the grips are visible. Then you can select the grips with the mouse and resize the selection.
How are you creating the selection? Show some code please. What verion of ImageEn are you using? Does the Demos\Other\Mouseinteract demo work correctly?
Selections are working for me just fine with version 8.0.1.
There are many new enhancements in 8.0.1 including CropTools. ImageEnView.MouseInteract := [miCropTool]; The CropTool is a little different on how it works but you may want to try that as well. Look it up in the help file.