Groups / Hide Isolate

Here is the problem: when creating a group from model objects (furniture - cubicle panels in this case) it will allow me to select the objects and the model group is created. However, when I place the group in the project the objects are placed as individual items - selecting them does not give the group bounding box or the insertion point. And to make it more interesting it happens on one level of the project.

For the Hide Isolate function it is not working at all for and view. Could this all be a bad install or a user profile issue?

UPDATE: the problem seems to from using the Apply Hide/Isolate to View. When that is selected the Groups functions stop working correctly. This seems to be a permanet condition for that floor plan view. Again any ideas?

Help!!