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A file such as a DXF or Shapefile looks different as a background layer, compared to how it looks in AutoCAD, MicroStation or ArcGIS.
Or... when zooming in to a background layer, it appears to shift around.
Reference # 659289
The issue with the background not appearing the same or shifting around is a known issue related to the use of very large coordinates. When the X/Y coordinates of the linework or image is very large, the accuracy is reduced, and curves and other things will not appear smooth, but rather they will appear jagged.
For polyline, point and polygon Shapefiles, an improvement was made in a patch to version 10.00.00.55 of WaterCAD, WaterGEMS and HAMMER, and a patch for version 10.01.00.70 of SewerGEMS, SewerCAD, StormCAD and CivilStorm. Please contact technical support for the patch if the above is the current version. Or, upgrade to a newer version when available.
If you are not able to upgrade or patch, or if you're using a different background layer type:
1) Try running the Update Database Cache command, from File > Database Utilities (CONNECT Edition) or Tools > Database Utilities (V8i).
2) Take advantage of another platform. That is, if the issue is with a DXF or DGN, use the MicroStation or AutoCAD integrated platform of the product. If the issue is with an image, use the ArcMap integrated version. You should see a shortcut for an integrated version of the product, such as StormCAD for MicroStation.