MicroStation - AutoCAD Units


I am using MicroStation v8i SS4.

I have an AutoCAD drawing with units set to "Unitless".  The geographic coordinate is set to SC NAD83 Int'l feet (SC83IF) and units are set to "unitless".  I am not having luck getting a dgn file to reference into the AutoCAD file correctly.  The dgn file is also set to SC83IF, units are set to feet.  I found though, if I save-as the dgn file to a dwg file, they reference together correctly, but I have to ensure the new dwg file system variable "INSUNITS" is set to 0 (unitless).  However, while inside the dgn file, in the MicroStation dgn file, the dwg file appears shifted about 4 feet.  I am certain this shift between files has something to do with units interpretation between AutoCAD and MicroStation files, but I am not sure what to set the dwg file to, and the dgn file, so they will both mesh together at the same exact location.  Are there any ideas on this subject, I am all ears for any suggestions / recommendations.