Heidi ~
Welcome. I'm sorry that you're received an acoustic neuroma diagnosis but I'm glad you discovered the ANA website & discussion forums. I think your doctor was referring to the IAC - the internal auditory canal - and that the tiny tumor was close to it. You can ask him about this next time you talk to him - and if he uses medical jargon you don't understand, simply ask him to explain it to you. That's what I did. It helps.
With such a small AN, you very likely have the option of irradiation which will not remove the AN but will effectively stop it from growing and doing any further damage. Radiation is non-invasive (no cutting) but has it's own set of risks, as does surgery. I would suggest that you consult with more than one doctor and try to find physicians that perform both surgery and radiation because if they only do surgery, that is what they'll recommend. Likewise, if the doctor only does radiation, he'll usually recommend radiation, especially for a tiny AN, such as yours. Your concern about doing further damage by 'watching-and-waiting' is valid. This is why you need the opinion/advice of medical professionals. However, in the end, only you can decide what course to take, so be prepared to make that final decision. We're here to inform as we can and offer advice when requested but most of all, we offer you our support. We don't judge but we certainly do encourage. We have many AN patients with much experience. They know how you feel because they've been where you are. I'm one of those folks and I hope you'll consider these forums as a resource and all of us as 'family'.
Jim