Most often this is a result of the extents of the CAD file being very large, and I mean in the thousands of feet. I've noticed your same problem mostly with civil engineering site plans, but have also seen this with architectural floor plans too. The imprecision stems from the way Revit is trying to perform the math with such large numbers that the precision goes down causing the weird line and snapping issue. My suspicion is that the linework in the cad file is far away from the 0,0 point in the cad file. Another possibility is there is an object in the CAD file that is (to quote Star Wars) 'in a galaxy far far away' from the plan elements such as an errant point, line, or a leftover block.
I've found that the best solution is to clean up the .dwg file in AutoCAD by zooming out a lot, then use a selection window to try and find the 'far away' objects. Assuming you find something, delete it. Then use the Zoom Extents command to double check that the limits of the drawing more closely resemble what you are expecting (site or building).
If you can't find any errant objects, use the Export to AutoCAD command (in AutoCAD) as this may help correct the extents. This is all predicated on the assumption that you have Linked the CAD file in Revit as opposed to Inserting.
I hope this helps,
Andy Brack