In the part it does work, in the assembly as an assembly feature it doesn't. In a part I get the ref plane perpendicular to the selected plane and right on the cylindrical surface I selected and then get two solutions for plane positions tangent to the shaft in the front or in the back. That works fine.
When adding the ref plane on the shaft as part of an assembly the ref plane shows up in some strange position and not on the selected surface. Also changing the angle doesn't help.
As you mentioned: In SW 2010 it works, indeed the plane menu is updated. OK then I will create an alternative in 2008.
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