Tim -
Here is the first set of grading objects that I used as an example - three ponds grading up and grading down. The ponds needs to be built on the side of a hill.
This is/was iteration number three. At least two more were computed and edited live. All of these edits were completed with 2008. The only problem was the inability of 2008 to make grading objects interact with each other.
What I have found is that if your featureline doesn't like going to grade - get rid of it, and create a new one on a new site.
As for offsetting a contour at grade or slope? - Look at the end of your Featureline toolbar - the command "offsetfeature".
Isn't most grading just that - an offset over and up? or over and down? With a little math or a bunch of parentheses - it is quick.
In 2009, there is a new toolbar Featureline grading by Reference that allows your to grade an offset featureline based on adjacents objects that have a Z elevation. For example, if you used point objects, (the transparent command 'PO) can be used to edit a featurelines vertex elevations.
Matthew Anderson, PE
Vice President
Joseph A Schudt & Associates
anderson at jaseng dot com
Matthew Anderson, PE CFM
Product Manager
Autodesk (Innovyze)