Well I gave that a shot but no go. Reboot, new scene or .vobing it didn't work.

One thing I did just discover is that when I d/l'ed the file the cow was on a some kind of flat box. If I leave it on the box, I can size it and rotate it. When I remove the box or ungroup the objects, that is when all heck breaks loose. Strange.

Is it possible there is a connection between these two objects that was saved into the file that causes this? A linking of sorts? I can bypass the problem by making the box a transparent material and hide it, but still curious about what is happening. :)