In Eclipse, you can turn this (search highlighting) on or off by using the "Toggle Mark Occurrences (Alt + Shift + O). Visually, the control button for this looks like a yellow highlighter.
As for "SDK Version"... in Eclipse, go to Window > Android SDK Manager. This opens up a window with several details related to your SDK version and supported libraries, files, etc. Near the top, you should see Tools > Android SDK Tools. Your version might be 22.0.5 (as an example). This is the SDK Tools revision number. You should keep it up-to-date periodically throughout the year (check monthly if you wish).
The SDK Tools version number (22.0.5) does not mean "2.2" - this 2.2 number refers to the Android API version..
Please see this google link for a correlation between SDK Version and API version. The AndroidManifest calls it "minSdkVersion" so i can see where this can be confusing.