I'm having the same problem.
Contours generated in ArcMap10 (with spatial analyst contour from raster) creates me a lovely contour file with elevations in a 'Contour' field.
How do I get that to microstation Version7 in 3d?
I have tried the directd export to dgn v8 and then downgrading it. I've also used FME to go from Shape to DGN v7.
No matter what I've tried, the contours come through nicely but without any elevation. I've used a variety of 3d 'seedfiles' for the dgn without any luck.
What am I missing?
Thanks,
-t