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The problem seems to be the original Artboard size of your file and Adobe's solution to larger Artboards - to create a 1/100 scale file.
If you create a file with an Artboard larger then that magic number - 226" and then subsequently reduce its size, the Align Distribution will remain at 1/100. So if you try to align shapes to a key object at .5" apart, the result will be a 5" spaces, even though the tool says .5", resulting in apoplectic hair tearing.
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Sounds vaguely familiar. I'm not sure of others' success or failure, but the few times I've wandered into auto-scale territory, it caused me more problems than it solved.
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Yes, you have to watch the outputs to things like plotters. I have found plot jobs screwing into media at 10% scale OOPs!
It dosn't play well with other progams sometimes.
My original post stated 1/100, the scale is 1/10 I think.
It is nice laying out jobs at full scale, you just have to bear in mind it's faux full-scale.
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My mistake, the scale it 1/10 not 1/100.