I am trying to create a dynamic block similar to the imperial section callout in ACAD's tool palette window. I am having a problem with my linear stretch after I rotate the block. It doesn't stretch aligned, it stretches using some crazy angle. I know this is a crappy description so I'd be willing to email over the block if you'd like to give it a try.

Yes. I was able to create the block as I had wanted. The trick was to only include the parameter for stretch in the rotate and not the action for stretch.