So we just upgraded to max 2011 and I've run into this problem when i am trying to snap verts while using axis constraints. when i select the verts this little circle pops up in the center of the gizmo right on top of verts. but unfortunately when i try and move the verts and snap them to something else I can't grab them…
Bartalon is right. Typically when snapping verts you're going to want to grab the manipulater handles OR that little circle. In my testing just now, grabbing the handles, or the 'yellow' area between the axis arrow handles of the manipulator does the same thing as having only one vert selected and using that circle. If you…
If you're using axis constraints, you should be grabbing the gizmo's axial arrows (or the right-angle square created by two axes) rather than the center circle. Grabbing the little circle is equivalent to moving your selection through all three axes at once, which is essentially an unconstrained transformation.