Thank you Jon. This is really helpful. :)
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What is an Xref?>An Xref is an External Reference. Basically you can have a "dwg" that has an xref of another drawing, you can see the xref'd "dwg" but it's stored in its on file.
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Why do we use Xref?>I usually use them to reduce file size and for easier Maintenance. Update the xref'd file and all the "dwg's" that point to it are updated
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What is the best situation to use an Xref?>You'll have to make that call :)