David,
Sure, the Airplane icon is your current GPS or last known GPS position. The Red "Crosshair" is going to be the center of the screen. If you pan and position the "crosshairs" at the center of the screen at a desired point on the Map, the Simulation Mode will begin at the "Crosshaired" point. The Crosshairs will only show when your finger is on the screen and/or you are panning.
Once you start the Sim mode the Airplane icon should appear in the middle of the screen or the point of the Red "Crosshairs". Then you can start your sim flight. Once you end your Sim, the screen will snap back to your actual GPS position, provided you have a GPS lock. I hope this helps.