Microstation Connect not creating layered PDF

I am trying to create a layered PDF in Connect (  When opening the PDF there do not appear to be any layers.  When I create the file in V8i I get the Layer tree with no problems.

I am using the option 

Attached is my pltcfg file.  I have also tried setting in the Plot dialog box Print Levels/Reference to * for Level and File/Reference and On/Off set to On.  In the References tab File/Reference set to * and On.  I am still not getting my Levels in the PDF (see attached).

When I select my print driver It also sets the Printer/Paper size to PDF-1 which I'm not sure what this is. My print style is PDF-Space Information in dgnlib file attached.

Any help would be appreciated...