||Hi Nina and Bob;
Did either of you find a solution to this issue? I have the same problem but here's how I make it work. While in layout view, I select a feature on my map (using any selection method). Then, in the TOC, I right-click on the layer who's feature(s) is/are selected. From the drop-down menu, navigate to selection>pan or zoom. It works great (zoom changes the map scale so be careful with that). Besides this, it seems that you can't very easily zoom in to your data while in layout view (makes sense).
If you tend to do a lot of panning/zooming around, especially if you often return to the same extent like you would if you were repeatedly creating maps for the same areas, consider making yourself a map grid and try DSmapbook to help automate things a bit. Of course, DSmapbook has its own “challenges”, if the discussion threads are any indication….
Hope this helps!