Sorry, it looks like it must have been a disabled edittext that I was using rather than a label. That scrolls up and down by clicking and dragging anywhere within that disabled edittext.
I am using the recommended AVD (API Level 8, Platform 2.2)
I've been switching back and forth between an edittext and a label to use to show the user a short story. Now I'm using a disabled edittext with a transparent background and white text. Although it may not be obvious to the user that they may need to scroll down to see more text.