My temporary fix:
From the ACAD2002, open the drawing I need the information to be copied to, insert a block of the drawing that has the information I need. Explode the block(s) and erase the info I dont need. Lame, but it works for now. Less steps than dxf-out, dxf-in. I am not working in 2007 any further until this is fixed, doing so will "infect" other drawings.