Geographic Coordinate System Reprojection

Problem:  While attempting to reproject from a local datum to state plane coordinates Microstation does a "HARD" close during the transforming coordinates process.  The file I am having trouble with are Geopak SS4 design files.  I can reproject my alignment and right of way files without any problems.

Has anyone had a similar problem with linework generated in a Geopak SS4 design file?

FYI, I'm not a stranger to reprojecting files.  I just did a raster reprojection for a coworker yesterday.