Cutting vectors into other vector shapes??

Hello, I don't usually use illustrator but I needed to vectorize a design I did in photoshop. I vectorized the image but now I can't delete or edit things in it ?? I need to clean up some edges from some merged vectorized shapes but it's not letting me use the scissors, the knife, or the eraser, or make new anchor points. I also need to cut this text out of another vector block so it's all one transparent block, but pathfinder tool isn't working and neither is clipping mask. I've even tried merging them and the cutting the shapes out but that didn't work either. Am I just missing something????

Image with the text on it- next to image with the block underneith it that won't accept any cutting into it.