"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."

I agree with Richard60.  To further elaborate, you would only need the translate Icon, 3rd icon, to accomplish what you desire.  Turn off IK for the legs and select the individual leg parts, bending each to the appropriate position.  Or, with IK on, select the foot and push it towards the buttocks.  This action will drive the knee towards the ceiling.  Just don't overdo it or the mesh will horribly distort.