The actual 1098 does not have real estate taxes listed(box 10). Above the form in the annual tax and interest statement, it has disbursement form escrow and lists property tax. Is this what I enter as real estate tax, even though it's not in a box?

Yes, the amount paid from escrow is the amount you want to enter.  

Every month when you pay into your mortgage, some part of your mortgage payment is usually set aside to cover property tax, which only needs to be paid to the state or locality at most once or twice a year.  

You don''t actually get a deduction for paying that amount to the mortgage company, you only get a deduction when the mortgage company takes the tax they've escrowed for you and sends it to the state or locality.