Kate Morrical clears up a quirk of AutoCAD tool pallet block inserts which is user related. In short single click the tool, then place to get osnaps every time.
Autodesk Discussion Forums, and thought I’d re-post it here in case someone else had the same trouble.
The poster was confused as to why blocks inserted from a tool palette didn’t seem to obey object snaps during placement, despite the fact that they were active.
A little detective work uncovered that the methodology was to blame…
UPDATE: It seems Windows Live Writer is trying to make Kate metric!