Copying materials from dgnlib to DGN?

Hi,

Does anyone know of a way to get materials to copy from a dgnlib to a DGN file on use?

I have many materials applied to meshes via element templates and others by level and they are not copying locally, even using the MS_LOCAL_MATERIALS config variable. I really don't want to be having to provide the client with a dgnlib just to see materials for the dgns we produce.