Gill,
Here is some more that kind of rolls together Matt's and Tick's answers and adds something else.
First, in the part with external references:
- Look for features wth the -> symbol in the feature tree.
- Starting with the first sketch as in 1. above enter the sketch.
- Use the Display/Delete Relationships tool from the RMB
- From the drop down list pick Defined in Context and delete all those references.
- Fix missing references so that the sketch is defined.
- Exit the sketch.
- RMB on the sketch in the feature tree and Edit Sketch Plane
- Make sure the sketch is referencing a sketch plane in the current part.
- Repeat 1 through 8 till done with the part. Note: On step 8 you may want to reorient the first sketch so your drawing views come out right. This may require a bit of fixing but is worth it for consistencies sake.
Still not done yet.
Now, go into the assembly in which the part was defined.
- Look for InPlace mates referencing the part fixed above.
- Delete those InPlace mates.
- Remate the part.
Now both the assembly and the part should act as if there were no external references. Sorry, this is always going to be a manual procedure because creating a part in context will create the first sketch in "global space" which means the first sketch will likely not be centered on the origin very well.
Sometimes it is a good idea to delete references and remate right after creating the part and then continue with it with the first sketch on the correct plane and centered.
This is a PITA just to use external references so I only create them when I have to and I only leave them when absolutely necessary.