I'm also having the same problem with switching from paper space to model space. Just thought I'd add my experience to help someone find an answer.
My machine is running Windows 7, I'm using Civil 3D 2013, and have a NVIDIA Quadro 400, which appears to be certified. I don't think it's a graphics card problem anyway, because it's literally changing the view of the model space, and I can pan, zoom and rotate. In fact, when I switch to model space, I initially see nothing at all, and only when I zoom to extents do I see the thin line at an angle that is my whole 2D drawing.
Audit showed no errors.
UCSFOLLOW set to 0 or 1 made no difference.
... Ok, the workaround provided by nrz13: --> (defun c:5 ()(command "model")(command "-view" "o" "t")(princ)) <-- works! And I mean permanently. I closed and reopened the drawing, and it seems to be fixed.
Actually, I just used "-view" "o" "t" at the command line in model space the one time, since I already have a keyboard command setup using "tilemode" that I didn't want to mess with. I try to keep my lsp's to a minimum.
I don't think it's a big hassle to fix this error only when it occurs, but a permanent solution to stop it occuring would still be great.
I hope mnelson and simon have similar results.
Sorry, just an update. I didn't realise that the fix hadn't really fixed the problem.
By using "-view" "o" "t", I'd reset the UCS to the World Coordinate System. Which works fine, every time.
Going back to my custom UCS, or even setting up a new one results in the original problem. I'm out of ideas.
I've been testing in vanilla AutoCAD but it appears that you are using Civil 3D.
I will ask a colleague to try to reproduce the issue, maye this is only affecting Civil 3D.
I'll let you know the results.
If SethHall's suggestion works, then you can modify the workaround routine thusly:
defun c:5 ()(command "model")(command "plan" "current")(princ))
Again, it's not solving the underlying problem, but would just be a seamless workaround until the underlying problem can be solved.
I'm also on C3D 2013, I've been dealing with Karen Dowling on some other issues so I'll shoot her an email with a link to this thread and a culprit drawing from 2012 - with no errors, that has this error.
Our Civil 3D specialists confirmed that this is a known issue and our developers are aware of it.
You already know about the workarounds so I won't repeat them
Thanks for reporting it, hopefully this will be addressed soon.