Which way to Bind an Xref to a Drawing?
*Applies to: AutoCAD R14, 2000, 2000i, 2002, 2004 and 2005*

First what is Bind.  Binding with in AutoCAD is taking an Xref, (or Referenced), drawing and combining it with in the parent file that it is loaded into.  

  With the introduction of AutoCAD R14 came the Xref Manager and a second type for Binding a Xref to the parent drawing.  The two types of Bind are:

Bind -	Creates unique table references from the drawing.  This helps to work with layers and from the Xref file because they are named different from the parent drawing. i.e. Gears$0$ASHADE
Insert -	Merges table references from the drawing into the parent drawing and does not create unique references.  This helps to keep the drawings simpler in nature, but can be limited to the flexibility that you may need with things like layer controls.

  Both types have their advantages and disadvantages, so you may need to experiment a little bit to find out what format works the best for the types of drawings that you make.