"We cannot create a valid coordinate system" error - Raster Manager

Microstation V8i SS3 08.11.09.459

I am trying to attach a raster file (jp2) through raster manager. But i get an error stating "We cannot create a valid coordinate system". The raster in question appears correctly in ArcGIS and the coordinate system was verified as NAD1983 Texas State Plane North Central Zone US Feet. 

I tried setting the GCS for the DGN the same as the raster's coordinate system before importing the raster but that didn't help either. I will upload the raster via secure message (Athens.zip).

thanks,

Vinod

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