SolidWorks 2009 SP4.1

I am having difficulty inserting a level 2 assembly into a level 1 with a particular display state of the level 2 specified.  I browse to the level 2 assembly after selecting insert\component.  The file\open window pops-up and allows me to select a particular display state of level 2 for insertion.  However, after clicking "open," the command manager fails to carry this selection through.  I select OK in the command manager to finally insert the component at the origin and the display state that I specified is ignored.  Instead, the level 2 assembly is inserted with its "last saved" display state active.

The only way I have found to work around this is to be sure that the level 2 assembly was last saved with the desired display state activated.  This poses challenges in a multi-user environment having files controlled by a PDM.  Users must be conscious of the display state they have active prior to final PDM save/check-in before production release when the file gets locked down.  If this is overlooked, the released read-only production file ties users hands in future where-used instances.

Is this a limitation in SW09?

Thanks,

Gabe