Some elements in a file cannot be manipulated, they cannot be scaled or moved and appear to be locked. When using Scale tool, there is a message to say 'Element is locked'. However, the element is not on a locked level
In order to unlock element:
Select the element(s) using the Element Selection tool
Go to the menu Edit > Unlock
The element should now be unlocked for modification and manipulation
See Also:
http://communities.bentley.com/products/microstation/w/microstation__wiki/15162.how-to-unlock-the-locked-proxy-elements