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When you click what you call the center circle (technically called the Content Grabber, I call it the donut hole), you're actually selecting the image inside the frame. This allows you to move the image within the frame.
Double-click within the frame to toggle to select the surrounding frame (the selection color will change). Move outside the corners of the bounding box (the frame) to see the double-headed arrow indicating rotation; drag to rotate. Or drag one of the handles to scale the frame and image together.
Thanks for the help!
Although that is what I was doing, my problem is that no transform controls of any sort are showing up. There is simply a box with a little link on the top of it, no corners to drag, no rotation tool to pop up, it's strange