For those of you using SolidWorks 2005, especially those interested in in-context modeling, here's a heads-up:
There's a new System Option under "External References". It reads "Do not create references external to the model".
A co-worker of mine running 2005 SP0.1 (under Windows XP, SP2) was tearing his hair out today while struggling with trying to perform what should have been easy in-context operations within an assembly.
Little did he know that "Do not create references external to the model" happened to be checked ON.
This was apparently caused by the installation of SolidWorks 2005 0.0 or by the application of SP0.1, since the system option does NOT exist in 2004 (his prior version) and he wasn't even aware of the option until stumbling upon it during troubleshooting today. (I didn't know of it either until this afternoon.)
It's odd that this new setting seems be toggled ON or OFF inconsistently, since I also have 2005 installed and found my option "Do not create references external to the model" to be checked OFF (as it should be by default).
SolidWorks Corp. needs to carefully consider the effects of the software installer's routines upon users' pre-existing settings!
Many users have carefully tweaked their environments and shouldn't be forced to lose certain setttings. Any new option(s) shouldn't be set (by default) to the more restrictive mode(s)! On top of this, any changed or new (default) settings should be consistent on all seats of SolidWorks (at a given Service Pack level).
Per O. Hoel