Just to clarify on the local mesh control problem, I do see the icons on the part model indicating that a local control should have been applied, but when I say Show Mesh on the model ( after remeshing, of course ), the smaller local elements that should be in place of the global ones do not...
I'm having the same problem with CW 2006 SP 0.0
I was going to say it might due to insufficient RAM, but even with only 512 Megs, I was able to run a solids based mesh with nearly 800,000 degrees of freedom.
I've had a few other problems when doing the tutorial problems of SW's Designer...