Here is another Quick-Tip from CAD-a-Blog on using AutoCAD.
If you work with the GRID on set your limits. This will define the area where your grid will be shown. If you want to work in a small area of a drawing, set your limits there to display your grid. It is a better practice to set the limits to cover your entire drawing area and not a small portion.
Another reason to use limits is to help control the area covered inside your file. If limits are set, and LIMIT CHECKING is turned on, then you will not be allowed to select points outside of the limits area. This will help to prevent accidental insertion to points far away from your desired working area.
