In X2 you can just click on the PRV and drag a note out to size. I can't remember if this is the same in X1. If it's not, then I'm pretty sure there is a modifier key that you hold while clicking in order to add a note. Try holding CTRL or ALT when you click.
Then to change the length of a note, just hover the smart tool over the start or end of the note. The pointer will turn into a vertical line with arrows on either side. Click and drag.