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SDE 3.0.2 annotation features may not display in ArcInfo Desktop if there are other entity types associated with the SDE layer.
ArcCatalog and ArcMap will not display SDE layers that have multiple geometric entity types.
Some methods of creating SDE annotation layers may add point and line entities to the layer's definition.
Remove the line feature entity type from the SDE layer. Your SDE administrator can do this using the SDELAYER command at a system prompt:
sdelayer -o alter -l table,column -e pA -u DB_User_name -p DB_User_password