Thanks, but the explode and remake isn't going to work very well, we have a few thousand parts (each a component) in a model, and the the part's axis is important when we're generating the code for our CNC mills to make the parts. And a few parts are used multiple times in different orientations (one component definition with multiple component instances) so one instance would win, while the others would seem to be in wacky directions.

Primarily its the behavior of the move tool and how it locks on to certain directions. (technically it affects some of the other tools like the line tool, but we use the move tool much more often). I guess I could write my own move tool, but I was hoping that it wouldn't come to that and I'd be able to find some "Inferencing Options" screen with a checkbox for "Lock on to Component Axis" that I could uncheck so that it would revert to locking on to the model axis.

Regarding Sketchup Inferencing:
While using various tools like the move tool or the line tool, you can have it snap to the red, green or blue directions of the model axis. You can even lock to those directions with the arrow keys on the keyboard.
(You can check out the help documentation on inferencing to be clear on what I am referring to: http://support.google.com/sketchup/bin/answer.py?hl=en&answer=70143)

In Sketchup 7, while editing a component, this Axis Inferencing would continue to lock to the model's axis (some people refer to it as "global axis") regardless to the orientation of your component's axis.

But in Sketchup 8, when editing a component, it inferences to the component's axis instead.
If you have your axis visible (via the "View > Axes" menu), you can even see the model axis move to the component's axis location while editing that component.

The only documentation I have found related to this change is located at the "What's changed in this release of Sketchup" page located at http://support.google.com/sketchup/bin/answer.py?hl=en&answer=115424
It says:

@unknownuser said:

Sketch axes
The axes can now (optionally) be aligned with component axes while editing a component.

I am at a company that is trying to transition from Sketchup 7 to Sketchup 8, and this change is really messing up my engineers and holding us back from making the transition.
I would like to turn this feature off, and go back to the Sketchup 7 style. The fact that they listed this as optional gives me hope that this can be done. Does anyone know where this setting is located?
I have looked through the Preferences screen, the Model Info screen and the Styles screen and was unable to find anything that seemed related to this setting.

Any help would be appreciated.
-Thanks!

Based on what I found at http://sketchucation.com/forums/viewtopic.php?f=180&t=23321&start=0
It looks like you could call a file revert via

Sketchup.send_action(21485)

But this only seems to work if you were working with an existing file instead of a new file.

Alternatively, you could do something like performing a save-as to a junk location

Sketchup.active_model.save("C;/DeleteMe.skp")

But not ideal if you are working with a larger model that takes a while to save.

Hope this helps!