1) Manual focus means you must turn the focus ring to change the focus distance of the lens. Anytime the camera moves the focus point of the lens you are using autofocus (AF). With the Canon EOS system you use the AF/MF switch on the lens to select Manual Focus (MF) or Autofocus (AF).

Other than a few exotic big white Super Telephoto lenses that have an electronic MF feature (where you set focus to a certain point and program an extra button on the lens to return to that point whenever the extra button on the lens is pressed), the only way to manually focus Canon EOS lenses is to turn the focusing ring on the lens barrel. There are no controls on Canon EOS bodies to manually focus a lens.

2) The 'manual' focus point selection setting on the body is not to select whether you or the camera focuses the lens. Rather, it is to select whether you or the camera decide which AF point to use for the camera to autofocus the lens. With a manually selected AF point you tell the camera exactly which AF point to use to focus the lens. With the automatic AF point selection setting the camera selects the AF point from those available. In the 'Auto' and 'Scene' zones the camera always selects the AF Mode and the AF point. In the P-Tv-Av-M exposure modes you can let the camera select the AF point (by selecting all of them) or select one yourself.

3) With the lens set to manual focus (MF), you will have to turn the focusing ring to set the lens' focus. If there is a selected AF point active, when you have manually focused the lens to the correct distance for that point the focus confirmation light should come on in the lower right hand corner of the viewfinder if the 'One Shot' AF Mode was selected before the lens switch was moved to 'MF'.

Keep in mind that Manual (M) exposure mode selected via the mode dial has nothing to do with manual focusing mode. You can use manual exposure mode with autofocus or with manual focus. You can use some of the 'semi-automatic' exposure modes (Program (P), Shutter Priority (Tv), or Aperture Priority (Av)) with either AF or MF as well. You can even use the full Auto exposure modes with manual focus by setting the switch on the lens to 'MF'!