When working with MicroStation design files that have moved up the ranks from V7 to V8, you may encounter the following error when attempting to modify or manipulate an attached raster:
In other words, this message is referring to the following settings: Raster Rotation = Ignore Rotation and View Dependent = View Independent. You can see these settings for yourself by selecting the element with the Element Information tool.
In V8 there are two settings to control the rotation and affinity of rasters: Raster Rotation and View Dependent. In V7 there was only one field available called Apply Rotation and Affinity. When a file is upgraded from V7 to V8, the raster settings are defined internally by a set of rules that will maximize the display. In some cases this means that the settings need to be adjusted upon opening in V8.
There are a number of ways to deal with this error and you can choose the one that best suits your needs.
Hope that helps!