Not sure if they would be called holes. They are more like air bubbles that pop while I am rolling my fondant. Then I get powdered sugar in the holes and it is hard to get the sugar out of the holes when I try to get all of the access sugar off.. Can help with that?
Also, what can I use to get all of the powdered sugar off of my fondant? I use my hand but I notice that it doesn't get all of it off.
And, I am having a really hard time with my fondant drying SUPER fast. I use water and powdered sugar to roll it. It is a really nice texture while I am rolling it and putting it on my cake but if I cute it out with cookie cutters by the time I get all of my shapes cut out it is almost completely dried. Any help with that??

Thanks everyone!!

I don't "do" fondant (yet), but here's a bump.

To clean up your fondant and remove powdered sugar...
once you're done covering the cake, take a paper towel with a small amount of shortening and wipe down the cake. The sugar will absorb and your fondant will also regain the brightness and sleekness you started with. the shortning will absorb into the fondant and will not be greasy.

Kneading in a little shortening or glycerine will also help to slow the drying process a little...

HTH!

I roll out small batches of fondant and only cut a few shapes out at a time, that way a large quantity of fondant wont sit out in the air. It takes a little longer, but it keeps my fondant more pliable. Hope this helps.

Re the holes" sounds to me like you are not kneading it enough to begin with. It does take time and pressure (while kneading) to work them all out. HTH

Regarding the air bubbles, you can take a small pin and poke the bubbles so they do a large pop and when you continue to roll the fondant, the pin prick disappears. Good luck and hope this helps.

As you cut your shapes out you need to cover them with plastic wrap to keep them from drying out while cutting more. You can also use shortening to roll out your fondant instead of PS.

mbt4955- Thank you for the bump
chilz822- Thank you for the tip on the shortening. I will have to try that next time
Terri05- I am going to try this out next time and just do a small amount of fondant at a time and cover the rest of it.
tiggy2- I will remember next time to keep them covered

Thank you everyone!