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You can do this through states (called Pages/States in CS5, just States in Panini. I'm going to refer to it as just States here.)
You're best bet here would be to convert the graphic to a custom component by selecting it and choosing Generic/Custom Component from the HUD. Then, double-click the graphic to edit the component. Then, click the graphic and convert it into a custom component again (so you will have a component within a component.) This is necessary because you need to add an interaction, and you can only do that on components.
Use the States panel to create a duplicate state. In that state, add the text that you want to appear when you roll over the graphic. Go back to the first state, click on the graphic, and use the Interactions panel to create a transition between the states, setting the trigger for the interaction to On Roll Over, the action to Transition to State, the state to your second state, and the When In State to your first state. Repeat this process in your second state, but set the trigger to On Roll Out, the action to Transition to State, the state to your first state, and the When In State to your second state.
Now, go back up to the States panel, click on the second state, and again click Duplicate State. In this new third state, move the graphic to the desired final location, and make any necessary changes to the text. Then, repeat the steps outlined in the prior paragraph to create an On Click interaction to transition to this state. Be sure to set the When In State option to Any State this time.
This explains it very well! I was able to figure out that I can work with hidden layers and turn on the visibility once I have the mouse rollover, but then it still didn't let me attach an interaction. Thank you so much for your help on this! I will try it out right now to see if it works better,
I am not understanding a step...
when you say, "Then, double-click the graphic to edit the component " - how should I edit the component? You then want me to add a component, but the HUD does not appear when I double click the graphic.
You will have converted your graphic into a custom component. All of the states you will be adding need to be in the component, not in the main application. So once you convert the image to the component, you will be able to double-click it to edit.