Are you trying to create a profile from points that you have linear referenced?
You may be linking to the wrong attribute field and displaying the distance value of how far away the point is from your line. I have done this many-a-times.
When you linear reference points to a line you get 2 values "M" which is the measurement from the start of the line that the point is reference to. And "Distance" which is the spatial separation of the point to the line. If you convert a line to points and the linear reference the points to the line, this distance value is generally between 0 and 0.08 meters.
