Jim,
Change the 4th line of your DLG in some editor to read
3 3 0 2 0.50800000000D+02 4 0 4 1
instead of like you had it:
3 3 9999 2 0.50800000000D+02 4 0 4 1
The first 3 states that the file is DLG-3Optional format, the second 3
states that it is in an Albers Equal Area projection, and the next area
is for the zone number. If this were a UTM projection, you would need
a zone, but the correct entry for an Albers is 0. You may need to put
the 0 in exactly the same place I have it, the same as the last 9 in
9999, or the last byte of the field, for the import program to read it
correctly.
Refer to USGS Data Users Guide 1 - Digital Line Graphs from 1:24,000
Scale Maps for more info on DLG files, both standard and optional formats.
Good Luck !
David Hoover
Manager, Cartography and GIS Section
USDA - Soil Conservation Service
Idaho
a16dhoover@attmail.com