That would probably mean that your object's pivots are located at the origin of the grid. That is the problem with the option ( u have to "manually" set the objects pivots to behave as expected )
just watched the first chapter of the dvd. looks like it will be very promising. learned a bit from it already with using the grids in photoshop for reference plane setup.
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The round blockage element on the lower level seems really out of place with the rest of the grid structure. Try making it more of a square element like the rest.
afair e_defaultmaterial changes all textures to a grid texture, but you can change the texture to white by replacing the original (cant remember where it is though, sorry)