Control of a presentation computer is accomplished by a wireless optical pointer that projects an encoded control cursor onto a projection screen in an interactive presentation system. The optical pointer is selectively operable in a position-dependent, control cursor spot projection mode by actuation of a first push button switch that enables remote initiation of various computer keyboard commands and/or pointing device (mouse, touch pad, track ball) position-dependent cursor operations, e.g., select, move, left click, right click and double click. Operation of the pointer in a presentation function selection mode is initiated by actuation of a second push button switch in which a predetermined spatial image pattern can be projected onto the screen by gesturing, thereby enabling remote annotating or highlighting an object on the display screen. Optionally, operation of the pointer in the presentation function selection mode can be initiated by stylus actuation of a control switch which allows the presenter, while standing in close proximity or within reach of a presentation screen, to underline a word, highlight an object, circle an object, strike out a word or object, insert a note next to a word or object, or annotate an object or word with a check mark. These actions are performed by manually drawing a stylus across the area of the presentation screen that is to be annotated, marked or highlighted.