This is worth echoing and I posted it on the Tips & Tricks AUGI Forum.
Getting around the 2 mile limitation when linking a CAD file (20 mile in Revit 2011)
DISCLAIMER: Be very careful when doing this as you can see severe display issues. Use at your own risk!
In Revit 2010, if you import/link a CAD file with entities that are more than 2 miles apart at the extremes, you will receive a warning and Revit won't let you finish the process. Basically everything in the file needs to fit on a 2 mile diameter "platter". Sometimes you could have a text attribute that is outside this imaginary circle that causes the issue. This tip has two parts to it: how to get around the limitation and how to clean your file so it works without workarounds.
I've been wanting to test out and write about the workaround for a while but I just came across a very well written tutorial so here it is! Thanks go to tonyisenhoff and phyllisr at EUA who shared this detailed tip here.
The second tip explains how to clean your file. Assuming you have a DWG file & Autocad, and you're sure your geometry fits on the proverbial "platter", do the following:
- With the file open, type the command "select" and at the prompt type "all";
- Now type "r" to remove objects and window your geometry. By doing this we're creating a selection set of offending objects, which sometimes are invisible. Click/spacebar/enter to exit the command;
- Now type "erase" and then at the prompt, type "p" (for previous). This selects the selection set completed in 2. Click/spacebar/enter to exit the command;
- Nothing in your file should be outside of the area you windowed, so save the file and link/import again in Revit. No error or warning should show up.
EDIT: As MrJackson commented, it's much easier and faster to hit CTRL-A to select all, then hold SHIFT while windowing the geometry you wish to keep. Then hit the DELETE key.
Also as of Revit 2011, the limitation has now been raised to a hefty 20 miles. Thanks Factory!

2-Mile Limitation (20 mile in Revit 2011)