> Am I doing something wrong or is it a bug?

It's hard to say.  It sounds like a bug unless there's something unusual in
how you're creating the associations, but I just tried this with the current
SVN version and it worked fine whether I created the association from the
diagram tool bar, the figure toolbelt, or the explorer context menu.  In all
cases the association was added to the package which contains the diagram.
Also if I create something in the root model, I can move it to whatever
package I want.

What version are you using?  How are you creating the association?

Tom

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