For annotation stored in a file geodatabase at version 9.3.1 SP1, in an ArcMap Edit session, calculate the field HorizonalAlignment = 0. This left-justifies the text, and the exported text will appear in the correct location in the output DGN file.The default is Center (HorizonalAlignment = 1), with that default value, the annotation in the output DGN will be arranged in a column, rather than in the proper position.