I am working with an imported survey dwg and as I zoom in very close the cross hair position on screen separates from the pick box in the Z direction and it becomes extremely difficult to select a point on any object. I don't know how to fix this issue and am becoming very frustrated in this file. I have tried importing the work into another file but the problem comes with it. Any help would be appreciated.

Not sure how that is even possible.  Sounds like a graphics problem to me.

It only happens in this file or with the imported data from the file I received. I've never seen it before either and I have been using AutoCAD for 20 years.

Have you tried cleaning the file up?