It would probaly be worth trashing your InDesign preferences:
Close and relaunch InDesign, and IMMEDIATELY hold down Ctrl + Alt + Shift (Windows) or Cmd + Ctrl + Opt + Shift (Mac), and respond in the affirmative to the dialog asking if you really want to replace the preferences. You must be extremely fast on the keyboard (if you don’t see the confirmation prompt, you were too slow).
You may need to do this a couple of times before getting the hang of it!
Version 10.10.5 Yosemite
I will try what you suggested.
I got the window to show up. I click on the yes. But the cursor never becomes an arrow. It stays as hour glass. How do I know if it actually worked? I tried the place function again and it still doesn't work.