Problems with Lidar and Terrain Model

Currently trying to use Lidar data (.las) from the state of KY to make an inroads DTM. When trying to import into inroads SS2 the coordinates and elevations are way off. I tried to import in SS4 using the "Create From File" civil terrain tool. This will bring the data in correctly coordinate and elevation wise, but I am unable to filter out trees, buildings, etc (iso lidar with trees.jpeg). Finally, I've imported using point cloud tools and ended up with the same mess as when I imported from SS2 (iso point cloud and plan point cloud jpegs). These files work fine for the client who uses ArcGIS. They also provided .lasx and .lasd files. Am I missing something? Any help would be greatly appreciated.

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