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Thanks Joel,

I think the new version of Illustrator saves them as PDF compatible and that's why the ones I re-saved allow me to select them... they get updated to the new Illustrator CS4 format.

I created a stencil library by selecting New Stencil from the File>NewResource>New Stencil menu option. I then placing the linked illustrator file in to that new stencil file and save it to my stencil directory in Application Support>OmniGraffle>Stencils. I was hoping that if I changed the original Illustrator file that it would update the stencil and any instance of that stencil used in an OmniGraffle file. To my disappointment I found that it loses the link to the original Illustrator file and I can't even re-open the stencil file to relink it there. I have to click on each and every instance of that object and manually relink.

I came up with a workaround where I place all the header objects on a layer, place all the footer objects on another layer etc.... Since they are all the same object on the layer I lock the other layers, select all the objects in the layer and then relink from the Image inspector. The relink applies to all the selected objects and they update. It gets very complicated and is not ideal.

Take a look at the Flash Symbol library...If I use an instance of a symbol in my Flash file I can open and edit the symbol and then the changes flow where ever the instance of that symbol is used. Ideally OmniGraffle would work like this too. This concept is used a lot in 3D programs too.

Thanks for your response. I use this program all day and despite this limitation it is still light years ahead of doing all this in Illustrator or even Visio. Keep up the good work!