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I am currently working in AutoCAD 2012 and have been creating dynamic blocks for a while now.
What i am running into is this:
When i create a Lookup Parameter and add all of the necessary parameters (flip1, flip2, visibility and distance1) to the block, it acts as it should. However, when i select the LH or the RH lookup state the check mark defaults back to the "Default" state. If the "LH (Reversed)" or the "RH (Reversed)" state is selected, the check mark will stay on the selected state.
In AutoCAD 2009 i know that if you set the "Custom" lookup state (found at the bottom of the lookup window) to the first listed state, it will correct this issue. But in 2012 this is not the case.