Hi - it does it with both blocks that are within the drawing and also blocks being inserted from elsewhere. So it does it as soon as I hit "i" then "enter" or as soon as I try to open the block pallet (before browsing to or selecting the block I want to insert). Note - it works ok for the first few times I try to insert a block in a drawing session.

Interestingly, I haven't tried using classic insert, but I'll do that for the rest of the day and see how I get on, thanks.