I have recently started using annotative dims. I am having an issues with the arrow size, text offset, and ext line. The text hieght will scale properly (.125 paper hieght), but the arrow sizes will scale REALLY small. This happens inside modelspace. I know paperspace is the way to go, but I work with an older generation of draftsmen who DO NOT and WILL NOT use paper space. Any advice would be greatly apprecaited. BTW we used Autocad Mechanical 2013.
Firstly, AutoCAD Mechanical doesn't play nice with annotative objects OOTB, so you'll have to change a setting to allow that.
Secondly, it sounds like you made the text style annotative, but not the dimension style. I think it may have to be the other way around, without a set limit on the text height in text style, but a defined paperspace height for annotative dimension in the dimension style.
Further, I always create my annotative objects in paperspace first, because that's where they plot out at 1:1 scale usually. Also, if you work in modelspace, don't forget to set your CANNOSCALE to match the intended paperspace viewport.