Usually, I include the entire tip here, but this one is too long and includes a drawing. So instead, download the tutorial. This tutorial requires AutoCAD 2006 or later and will help you get up and running with dynamic blocks. You’ll learn how to add parameters and actions to make your blocks flexible and intelligent.
Specifically, you’ll work with a desk, chair, telephone, and computer block. You’ll create a block in which you can move the chair independently, stretch the desk within certain constraints, stretch the computer’s monitor from a drop-down list, and make the phone appear or disappear.
If you want to understand this powerful new feature, this tutorial is for you.
Here’s the final block in the Block Editor:

Here’s the same block in a drawing, reading for dynamic editing:

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I am new user of auto cad 2007..can u guide me about X-refes?how they will help us to fast up my dwgs..
[...] Add parameters and associated actions, or geometric parametric constraints. Here’s a tutorial on creating a dynamic block. [...]
Dynamic block are great. But when i insert a dwg that contains Dynamic blocks as XREF- there are rectangles all over. how can i make them disappear?!
PLEASE HELP!
Thank you very much, Ellen!
Really really helpful and I managed to create my own dynamic blocks
straight away just by reading that downloadable tutorial you made.
Thank you for your generosity. I appreciate the effort a lot.