AutoCAD Architecture :: Large Hatch Pattern

I have a CAD station that is having all sorts of issues all of a sudden. When one of our architects opens her drawings she gets the "Hatch - Large, Dense Hatch Patterns" dialogue box.

When I we choose the "Do not convert these hatch patterns" and open the drawing, it converts all the hatch patterns to solid anyway. This is mostly affecting the walls and converting all the hatch into one solid blob of a hatch.

One weird thing is this only happens in the medium detail display configuration. I can go to any other display and it is fine. The other weird thing is that these same drawings open fine on any other computer so it has to be a system problem.

The other gremlin I solved yesterday was that the system all of a sudden was not recognizing the LTYPESHP.SHX file. I had to add the DataCache support folder containing a ltypeshp.shx file to the support file search path.