I'm using Poser 9 -- james lying on back. I want to bend the knees up toward the ceiling so both legs form triangles with the point toward the ceiling. I keep trying to lift, but with the first three tools, I seem to only be able to rotate legs."

Right click on James and make sure that IK for the feet is turned off.  The other option is to move the foot which will move the knee.

Poser 5, 6, 7, 8, Poser Pro 9 (2012), 10 (2014), 11, 12, 13