Pre-selection Method
1) Click on the surface of the cylinder close to where you need the hole.
2) Select the Hole Wizard icon.
3) Select options within HW & click on next.
4) Deselect the Point icon (or place other points, then deselect).
5) Constrain the points. NOTE: The hole axis will automatically be perpendicular to the cylinder surface, so only axial & radial constraints are needed. Note: The point can be constrained to a plane.
6) Click Finish
Post-selection Method
1) Select the Hole Wizard icon.
2) Select options within HW & click on next.
3) The Point icon will already be selected, & points can be placed where needed.
4) Deselect the Point icon
5) & 6) as above.
An irrelevant aside;
The differences between the Pre and Post selection methods are;
1) The type of sketch produced for the Point placement;
Pre with a planar surface --> 2D sketch
Pre with a non-planar surface --> 3D sketch
Post with a planar or non-planar surface --> 3D sketch
2) The 2D & 3D is that the 2D can be constrained to a line.
3) In 3D, dimensions can be placed using a face.
Also note that HW holes can be drag-and-dropped onto the same part & other parts, but will still need to be constrained.
If you need to place a HW hole at an angle (i.e. not through the axis) check out faq559-1156.