Thanks for looking at the model. I think I'm on track now.
First, I know the motor was not grounded and I did ground it in my test. I left it ungrounded in the file I posted because the motor is already grounded in the RC Motor file. I think you are saying that the grounded property does not come along when the file is inserted, so I am grounding it in both files.
I guess I should have been more explicit with what I was trying to accomplish.
The motor should be grounded and the shaft should rotate.
The MotorShaftDrive component should be rigid with the shaft and rotate with it.
The MagnetShaftActuator should slide up and down on MotorShaftDrive and rotate with it.
The MagnetCube should be rigid with the MagnetShaftActuator and rotate and slide with it.
The LimitSwitchLever should slide up and down but not rotate. I had this sliding on the shaft, but that actually is not correct and it rotated with the shaft. It should slide relative to the MotorBracket.
All that said, I completely redid the joints in this step by step fashion and got it to work properly.
I see what really happened, now that I've been through this multiple times. You were correct about that Rigid Group. I remember making it by selecting the Rigid Group option and then selecting the RC Motor, but I left the checkbox checked to include all the subcomponents. That included the shaft, so it wasn't going to turn after that. I verified that was the problem by building that joint the same way but unchecking that option and it worked fine.
The insight you gave me is that the joints could be made directly to the components nested inside the inserted design, so I didn't need to involve the top level component at all. I guess both methods work, but that checkbox disappears after making the joint so I prefer the more direct approach.
Bottom line is that it is all working as expected and I have a much better understanding of these motion joints. I also understand, I think, that the grounded property does not follow the link, but I can just reassert it in the main design.
Thanks a bunch!