Hi Eric,
Your understanding of the "Units" pop up is correct, if you select it, you should get the data imported in those units. That is not happening for “feet”. I noticed that all the test data we have is actually in “mm” thus this bug has actually passed through some recent changes. Thank you for reporting it.
This is the problem:
All the data is being multiplied by a factor of "1000" unnecessarily.
This is the workaround (for now, this will be fixed in an upcoming Service Pack):
When importing your data, select "feet" as the units. Once the import is done, scale by a factor of 0.001.
Then reset the origin to bottom left of your data in the "Top/Plan" view to see that your "feet" dimensions are correct and as expected.
Regards,
Fahad