I asked Autodesk Support about this question, and this is the response for all of you that are wondering:
"Thank you for choosing Autodesk Support.
I understand that when you use a grip to rotate an object in AutoCAD Map 3D 2010, no preview image appears for the object being rotated.
As you noted, this is a known issue in the 2010 AutoCAD applications. Our product development team has been working on a fix.
At this time, we do not have any specific information about when a fix for this issue will be released, but I have added your Support Request number to the tracking data for this issue.
The nature of this issue is that no preview image will appear if Object Snap is off, but there should be a preview when Object Snap is on. That means that, until we release a fix, you can use the F3 key as a workaround.
As long as you have not modified the default function of F3, pressing it will toggle Object Snap on and off and therefore will toggle the display of the preview image on and off. You can even press F3 during rotation of an object to toggle the preview image.
I apologize for the inconvenience you have had because of this issue"
so....for all you pre-2010 users that panic when they try to use the object grips-rotate command, be patient, and learn to toggle the object snaps to preview the object A LOT! I hope they fix it soon, or at least the next release!
Thanks for your post from Autodesk Support. I thought I was losing my mind. Osnaps on is an okay workaround but they have known about this since June! Software this expensive should be fixed in a more timely fashion. Especially when the bug is in a core functionality that I and so many others rely on. Until then, my F3 key will be getting quite a workout.
we recently upgraded to AutoCAD 2010 and we are having this same problem. we are running Windows 7 in 64 bit w/ a NVIDIA Quadro FX 580 and I have driver version 220.127.116.1166 loaded which is supposedly approved by Autodesk.
if anyone knows of any settings i can try, it would be much appreciated.