Prior to SW08, exploding a block would leave relationships in place for the entities in the sketch. For example, use the rectangle tool in a sketch and note that there are 2 vertical and 2 horizontal relationships.

Make the rectangle into a block. Then explode the block. In SW08 SP2.0, the lines no longer have vertical or horizontal relationships. If you have a point coincident with the origin, it gets whacked, too.

If you want the relationships back, you could use the Fully Define Sketch tool, but that seems a bit like focusing on the CAD, not the design.

For extra fun, add dimensions to the sketch. When you make the block, only select the sketch entities (do not select the dimensions). When you explode the block, the dimensions are gone, as are nearly all of the relationships!

If you window select everything (including the dimensions) when making the block, then more stuff stays put when you explode the block.

I think this is a functionality regression. I've missed the response from my VAR on this. Maybe SWW08 is in the way. Heck, it might be an enhancement - an alternative way of getting rid of those pesky sketch relationships!

It could be a problem only on my workstations. If you want to try it out, I've attached a sample that consistently goes underdefined when I make it into a block and then explode it.

If you have a similar experience, I encourage you to report this functionality to your VAR. First one to get an SPR wins!