Sure would be nice if pocketing worked as well as shown on the video. - Click boom done.
I've attached a file that I can't get anything to pocket on.
I'm using LazyCam 2.61.
I loaded the dxf (autocad V12 and others tried) with various tolerances of .001 and .01 then cleaned and optimized. I select a 1/16 cutter, circular pocket.
I can select any of the rectangles in the dxf and press pocket and all I get is an offset inside the rectangle.
In fact the project list shows an offset was added instead of a pocket.
I looked at the dxf and for all reasonable zoom levels I see no disconnects or overlapping lines.
Got to be easier than this.
How do I have to hold my mouth and which foot do I stand on to get this program feature to work. 
Very disappointing.

Sage

Sage,

sometimesyou have to move the arrow that is on the chain, around to a different spot.

Why this works, I have no idea but it does. Also, zooming in on each pocket helps as well.

Dave

I have found that I can not pocket either of your angled chains though so you're not completely crazy.

Maybe someone else can chime in here?

I have to be honest, I do not use Lcam anymore, just too flaky and couldn't deal with it ..... 

Dave

Hi Sage,
 The ones marked had lines on top of lines. The end ones showed 13 entities in cad where there should have been 10. The big one had 2 extra in it as well. Also changed the arcs to curves and all went well here.
RC

Sage, here are the ones that were doubled up, one on top of the other.
RC

Nice one, my friend - 

Dave

Hi Dave, never tried moving the start point around. Will keep that little tid-bit in my toolbox for the future.
Thanks,
RC

Sage,
Attached file is the one I ended up with.
Good Luck,
RC

Thanks Guys:
An interesting bunch of responses don't you think? Ranging from: the pocketing works if you zoom in or move the start point around, to: the drawing is defective. Got to wonder how zooming and moving makes the program ignore the defects. Obviously the program has defects of it's own. (nothing new there).
 I'll admit my mistake on the extra entities. I recall now I was inserting the rectangles into an existing inner frame in the center of the outline and then I trimmed inbetween the rectangles (leaving the bits of frame still behind the rectangles.) instead of deleting the frame. I'll have to be careful of that (apparently).
  I'm getting to be like budman68 - LazyCam is too quirky and I'm having trouble dealing with all the stange quirks and fighting it all the time to get it to produce results. But I'll persist because I have nothing else and it does lay the basic groundwork for the G-code to be done by hand.

Thanks for your help on this one. As usual this forum has come through.

Maybe someone should write a quirk manual .

BTW I've found a work around for not being able to re-order ENTITIES in a chain. (you can't re-order entities in a chain, only chains as a whole). If you have a chain, say a rectangle, that has entities in the opposite order you want to machine them. I've found you can fool it by asking for a lead-in line. In that process there is checkbox asking for CW or CCW lead-in. If you pick the direction you want for the lead-in it also re-orders the entities in the correct direction. Then, if you didn't really want the lead-in you can delete the chain generated for the lead-in from the list and the entities are left in the correct order. Sometimes it takes a couple of tries to delete the lead-in chain and be careful because the chains move around when you delete the lead-in. Check all of the chains after and be sure they are all still valid. (I suppose now soeone will point out another trick they discovered to do the same thing  )

Thanks again. Now back to the project.
Sage

Overloaded:
 When you said you changed arcs to curves what do you mean? I was using fillet function in AutoCad to get the rounded corners. Is there some other way of doing this?

Sage