Kate,
I actually used PowerDraft for a while. It's sort of the LT equivalent. I haven't run it on the V8 platform though.
I also ended up getting a full V8 license as well, so I have two.
Depending on how many files you are talking about, it might be easier to get a copy of V8 or XM now. There is also a program called CATS, that my previous company used to do translations. If he would check this forum, I'm sure he'd pipe in and say if it's worth it now, or if your better off just using Microstation.
I use to do a lot of Microstation work and then have to translate it into Autocad. Totally opposite, but we had lots of do's & do not's to make sure that everything worked out. For smaller projects where I had total control over the drawings, my translations were actually pretty good.
As Kindra stated: fonts, linetypes, and cutom entities, wipeouts/text masks. Basically anything that makes the software work really slick is a no-no when it comes to translating between packages. You could always farm out the translation part in the end if it's just a one-time thing.
Depending on if you have to send files back and forth or if it's just at the end, will decide which route you will go. You also need all the companies Cadd standards, layering, plot tables, etc before you even start. Do a quick test drawing with all your scenarios and translate it over and let them look at it to make sure it meets their requirements. This is very important!! Do they know you are going to be translating the files? Some companies get very nasty over that fact.
Pieter
Ask any more questions.