Craig,
I think I have a few answers to your questions. First, the stretch/grab boxes are displayed so that the user will know which annotation is selected in the case that there is more than one annotation. The "ugly-ness" of this is intended to be functional.
I tried zooming on a graph, but I couldn't get the image container to grow. When I zoom in on the point where the image is, the image gets larger unless I zoom in only over the area on the graph covered by the image. Then the area displayed is so small that it shows the lines of the graph and the image annotation/cursor is not shown on the screen.
To get the coordinates, try using the .PointIndex method. I graphed using PlotY and when I use the .PointIndex, I get the X value of th
e annotation point.
Hopefully that will give you a good start. If I come across any other information I will let you know.
Regards,
Shannon R.
Applications Engineer
National Instruments