MicroStation V8i SS2 Point Cloud & Raster Layering

Salutations, 

I'm having trouble getting the point cloud and geotiff file to layer. The steps I've taken are included below. 

After opening a MicroStation photogrammetry 3D seed file, I: 

1) Set the Geographic Coordinate System to match the LiDAR data. 

2) Download a National Agriculture Imagery Program (NAIP) map (http://datagateway.nrcs.usda.gov/GDGOrder.aspx

3) Attach the NAIP map using Raster Manager.

4) Download LiDAR .laz files from William and Mary's Geospatial site (http://www.wm.edu/as/cga/VALIDAR/)

5) Merge and filter the laz tiles using LasZip. 

6) Create a .pod file from the .las file using Bently Pointools V8i and attach it to Microstation using Point Clouds. 

The two pink boxes below illuminate what I end up with. The files do not overlap and the LiDAR data is much larger than the map. Please help. 

Dawn 

100625-ortho.dgn