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Hi John -
A couple of things to check....
1) it could be that the files were added but never checked in, i.e. the file you are checking in is still in the initial state. You need to use "get latest" on the file before performing undo check out so that it can route the file into a workflow etc.
2) It could also be that you have enabled "cannot ignore warnings" and that would prevent you from proceeding because it warns there is no local copy. If you disabled that permission you can probably undo checkout without getting latest first.
It appears to me that Joy is right on the money on both accounts; no local copy and you can not ignore warnings.
Lucas H. Dexter
Engineering IT Systems Administrator, CAD/PDM
Spartan Motors Inc.
I doubled checked Admin had "cannot ignore warnings" unchecked BUT the Administrator GROUP had it checked.
Shame there is no warning in the user properties window that the setting is overridden.