you should be able to use a regular autodcad block for most of your feature classes. Just add a style, hit the edit button and select the block you want to use.
What is happening is that when i am moving to Industry Model in AUD 2014 and checking the properties for my 2d Model Block i am getting error and the program exits.
you say the program exits, does it throw an unhandled exception error? Or does the program just go away with out any warning?
If it is either of these cases you should call AUD support because there is something wrong with the program itself.