I often have trouble getting xrefs to align in my drawings. Despite coming from the same consultant, two xrefs do not align when I overlay them, and instead, they end up many miles apart (literally). Sometimes consultants draw the same piece of land on the same spot in the cartesian world--but often they do not. So, when I zoom extents, I zoom into outer space and can't see the errant xref.
In AutoCAD 2008, I distinctly remember being able to "select all" and see the blue square "handles" on the tiny, faraway objects. For some reason, I have not found this feature in AutoCAD LT 2011. I used to find the feature helpful in fixing this trouble.
I have tried to sync my INSUNITS settings, but it seems to make no difference.