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What do I need to do in order to insert .sid image files into civil 3d 2011 drawings?
You need the Raster Object Enabler to see the file extension...
http://usa.autodesk.com/adsk/servlet/ps/dl/item?siteID=123112&id=15201709&linkID=9240698
It's MAPIINSERT, or MAPCONNECT. Notice that the MAPIINSERT has 2 I's.