The blue handle is supposed to align the tools to the world view. if that's what you want and you can't use the handle for some reason you can check 'World' in the tool settings, or use 'Reset tool'.
If you want the tools to adjust the face according to the face normals you can use 'set to face' or 'set to edge' in the tool settings.
Hope this helps,
Benny
When in doubt, delete history and freeze transformations.
My latest snake game
(Requires DirectX9 SDK and Framework)