The basic answer is that you haven't told the holes what size to be via the DC attributes dialog box. If you don't lock is a size (either a integer or with a formula) the hole will always change size when scaled.
I'm working on something to better explain it to you. Holes like you have drawn are a little tricky to do with DC.
I'm worried.
Google has the talent and resources to support software of this scale. Can Trimble really match that?
I'm very glad to hear that most (all?) of the SU team will be joining Trimble here in Boulder.
Is Trimble going to make 3D models for their GPS units? 
-Dennis B.
What d12dozr said about using inferences is your best bet im sure, but if its not, this program might be able to help you too.
Hey, everyone!
The model is now posted to the warehouse. Here is the link.
http://sketchup.google.com/3dwarehouse/details?mid=9e0b93c387cad06c93a794ea4e64d35b
Sorry for the delay but the original model was to large too load to the warehouse so I had to spend some time fixing that.
But now you can download the model and try it out for yourself! Good luck!
Dennis
They are only charging for the I pod touch (under 10 bucks i think) and the iphone update is free.
Also,here are a couple links that might help.
http://download.sketchup.com/OnlineDoc/gsu_mac/A-Welcome/Concepts/Con-Terrain.htm
http://www.youtube.com/watch?v=SZWYtDDbSFY
http://www.youtube.com/watch?v=eSlkkTsC4bA
http://www.youtube.com/watch?v=CcbIZFn6-mQ
http://www.youtube.com/watch?v=PwHdSVqUCac
As I'm sure you know all ready, the problem isn't with you so much as it is with Google Earth. Have you tried to submit to Google Earth already? They may let it pass because they might be able to see that the terrain isn't right and hope that it gets fixed later on.
The best option is to wait until they fix the terrain in that area. (no idea how or when that would happen) Or you could cheat some how. There are a couple thoughts I have on ways to cheat. (who plays by the rules these days anyways) You could rotate the whole model to match the terrain... could build a fake stone wall (or whatever material) under the building on the side thats floating... build your own terrain in sketchup that would 'blend' into the Google Earth terrain. None of those are good ideas (at all!) if this was a normal model, but it looks like a great model and would be a shame if it wasn't in Earth because of something Google has done wrong.
Dennis
Hey Jason
The stuff you have been told to do to 'fix' your model is right on the money. Google likes to accept models that look like the models they build for the 3D layer. They do this of course so that everything looks about the same. A SketchUp texture stands out like a sore thumb compared to a nice photo texture.
They did, however, make it so that you can tell the judges that they are wrong. I haven't done this myself so I have no idea how it works or even if it does work. But give it a try if you wish.
http://sketchupdate.blogspot.com/2009/05/launched-tell-us-why-were-wrong.html#links
I have this customer right now that is asking about moving SU files from his Mac to his new Windows computer. He says some of the files make it over with no problem but the other ones ājust crash the programā.
I have never done this before so Iām not sure if there is a bug there or if he is just having bad luck.
Any thoughts?
Dennis
Great work! Looks like a lot time went into this... but well worth it I would say!