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I am a beginner in GIS (for graduate school) and am using the GIS Tutorial Basic Workbook 1 for ArcGIS10. In Chapter 1 of this text, there is a "Convert labels to annotation" section which I cannot follow. When I right-click the item, "Convert labels to annotion" is not an option.

How do I implement this process?

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You need to right click the layer in the Table of Contents to get the option to convert labels to annotation. Try following the example in Exercise 3a: Converting labels to annotation.

More help can be found at Converting labels to annotation.

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