IF you are on 4.1.1 jelly bean, I just played with it and it took me awhile to get it. What you do is, hold the button on the S-Pen and draw the circle, then pull the pen away and wait a second of two, then you should see what you clipped in a dashed outline, then just touch the S-Pen to the clipped part (don't hold the button on the S-Pen) and drag it where you like. If using multiview, you can drag into an S Note or whatever app you have on other side. Hope that helps. Took me awhile to figure it out. Only thing I know, is if you want to use a rectangle/square instead of clipping freehand, the only way I know to change it, is to take a screenshot and then the options for clipping are shown.