Mesh Prep Wizard - Delete Greyed Out

I am trying to delete some extraneos points in a point cloud. The point cloud is about 25 MB. My first step is to run the Mesh Prep Wizard. When i get to the Extraneous Data Removal Step and i select my point:  the delete button is greyed out.  See my screen shot for some more info. Its also weird that the brush selection tool is greyed out, but i can live with that. I am running: Solidworks Premium with Simulation 2012, 64-bit, SP5.0.

Please help!

SolidworksImport export