[V8i SS3] Save as DWG does not retain presentation style.... Hidden line removal??

I am experimenting with Microstation as an option for Flattening DWGs.  Here are my steps:

1. Load the DWG in Microstation
2. Save as DGN (I have tried skipping this as well)
3. Set the presentation style for all xrefs to hidden
4. Save as DWG with all xrefs set to merge

It looks great in Microstation, but the presentation style isn't carried into the DWG.  I was hoping to get the hidden lines actually removed, but nothing I have tried so far has accomplished this.

Can the presentation style be saved over to the DWG? (I'm guessing no..)

If not, is there an option for hidden line removal in Microstation that I could then save to DWG?