Mix sugar, vinegar, and water in a medium saucepan; stir well before putting on the stove. Cook over low heat about 8 to 10 minutes until it reaches (228F) the softball stage.
Add butter or margarine and vanilla.
Pour the mixture into a buttered platter and let it cool enough so you can handle it. Butter your hands well (important! keep enough butter on your hands otherwise you'll stick), pick up the blob and begin to pull it. The more you pull the whiter it gets.
When it has reached the right consistency, cut into small pieces with a pair of scissors (easier to use for this than a knife.)