Decorating and moving objects: Doesn't pick up highlighted object.

I've been fighting with decorating and moving objects since release.

I have a bag clearly highlighted, but it picks up my planting bed next to it. I pick up an object and it instantly becomes HUGE and unable to place.
It happens outside and inside of various houses and lot sizes. You have to turn your avatar and adjust the angle, sometimes into first person, to move something.
I've tried adjusting the display resolution.

I searched through the feedback and bug forums, but didn't see anything.
Anyone else having this problem?