Assuming your using AutoCAD Civil 3D 2009 (not AutoCAD 2009).....
Have you tried to delete the alignment labels and then re-apply them? Guessing that even though you changed the units, and that they show up in meters as you mentioned in properties, that the actual labels are not 'dynamic' and do not 'auto-update' for this type of setting change. Worth a shot.
I haven't ever switches units through a design so honestly I am not sure if this will help at all. If there is a 'yellow change' triangle in your prospector tab, in the toolspace, right click and to a refresh to see if it changes.



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