In the External References palette, select
the reference name that you want to bind.
Right-click, and click Bind.
In the Bind Xrefs dialog box, select
one of the following options:
Bind converts the objects in the xref
into a block reference. Named object definitions are added to the
current drawing with a prefix of blockname$n$.
Insert also converts the objects in the
xref into a block reference. Named object definitions are merged
into the current drawing without adding prefixes.