section callout in SS3

I am currently using V8i SS3 and am looking to draw sections using the section callout tool.  Having clicked on the tool the 'place section callout' dialogue opens.  When selecting 'drawing seed' only 'none' appears in the dropdown box instead of a list of options.  Is there a setting in my configuration that's wrong?  How do I retrieve the list of seed files in the 'drawing seed' drop down list?

Is there an idiots guide to creating custom callout symbols, using dgnlibs and seed files?