This is my first time offering a solution... so I hope it helps! In order for the section planes to be hidden when you work in Layout, you need to set up your section cut, turn off 'display section planes' and save what you have on screen as a scene. Then when you open the model in LO, select the scene you saved (in the 'view' option in the 'SU model' toolbar). This should then be exactly as you had it in SU.

Tried the sequence you suggest Misto 11, but still no luck. I understood the recommended youtube video... but when I go to 'intall KT materials' thru' the plugin - I'm taken to my KT directory & only have the option the select a file & open it (rather than the window sequence shown on video. I notice you're Windows XP - I'm Windows 7 - could this be another of 7's irritations?

Thanks for your reply, help & support Tig - my apologies for not getting back sooner... clients suddenly can't throw enough work at me! I looked at the models mentioned but was advised they may not convert from 3Ds max properly & being only my 2nd Sketchup project I played safe. In the event the dilemma pushed me into learning to make a simple Sketchup model myself, (with reasonable result & happy client).
I've been producing 3D models for exhibitions for 10 years+ in AutoCAD (albeit a bit antiquated) & only this year transfered to Sketchup. So far the reaction has been excellent (hence the additional work) & the programme is proving to be everything I've been looking for ... wish I'd transferd sooner. The tutorial videos & support from groups like SketchUcation is just the cherry on the top! Thanks!

I've recently begun to transfer from ACAD to Sketchup up (with very positive reaction from clients). Typically thought, my first brief requires models I can't find inthe 3D Warehouse! Specifically I need an Iveco Daily van. Is there anywhere else I can search - my Skecthup skills don't extend to modelling my own just yet.