sw2006sp4.1, in assy doc create multiple display states (A and B), save the assy with display state A active, create a drawing and a drawing view, set that drawing view to reference display state B. Create a section view from that original drawing view, which display state is being referenced in the section view? I have noticed that the section view will reference the display state that is active in the assembly not the display state that is active in the parent view. This also appears to be true of detail views and broken out section views. The odd part about the broken out section view is that it does not create a new view but if the feature that is being removed by the broken out section tool is not showing in the display state that is active in the assy but is showing in the display state that is being used in the drawing then nothing will happen, that feature will not be "broken out" because the tool is trying to "break out" the material from the display state that is active in the assy and that feature does not exist in the display state that is active in the assy (the feature was part of a component that was hidden in the assy, hidden component = hidden feature).
I would consider this a bug. What do you guys think, bug or intended functionality? If you believe this is a bug please submit to your var, you can just use my data above or type your own email.