Place Smartline - line not starting in the right place

MicroStation SS3.  This problem just started in the last couple of days.  In the attached file, fit the view and start the Place Smartline tool.  Click a location above or below the blue box to indicate the start of the line.  The actual starting location is inside the box.  This happens with the Place Block and Place Active Point tools, also.Line Test.dgn This a appears specific to certain files.