When I create a new layout2 with an *active view* the dashed lines appear solid. The layout1 shows them dashed. I have compared the layouts in every way I know and can not see a difference. If I change the line scale to say .004 the dash lines are visible in the layout but not in model space. The only solution I've come up with is copying layout 1 to end and renaming it to layout2. Is this it?
From reading your post I think this is the variable you are talking about. From HELP:
You can set the PSLTSCALE system variable to maintain the same linetype scaling for objects displayed at different zoom factors in a layout and in a layout viewport. For example, with PSLTSCALE set to 1 (default), set the current linetype to dashed, and then draw a line in a paper space layout. In the layout, create a viewport with a zoom factor of 1x, make that layout viewport current, and then draw a line using the same dashed linetype. The dashed lines should appear to be the same. If you change the viewport zoom factor to 2x, the linetype scaling for the dashed line in the layout and the dashed line in the layout viewport will be the same, regardless of the difference in the zoom factor.