Hi shannon,
It might pay to have a look at the link below. It's a Youtube clip on PG Music's site that shows how to edit notation. It might solve your problem.
https://www.youtube.com/watch?v=Twyl0qNMhBoBand In A Box approaches notation entry very differently from any other program. Once you get the hang of it, it's a very efficient process.
Essentially, don't worry about the tie. When in notation mode, just click on the beat of part of the beat that you want the note to be on. BIAB will look after the note values when you select the subsequent note. If you want a rest, as Matt has said, simply click on the "Rest" checkbox and then click on the beat or part of beat that you'd like to have as a rest. Again, when you add the subsequent note, BIAB will automatically adjust the timing.
In relation to your diagram above, if the second E is deleted, the tie will become the red one you indicate.
Hope this helps,
Noel