Eagle Cad: Library package appears different when placed on pcb
After a couple of days off and on of searching, I finally found that the problem was a circular board defined with 0 width on the dimension layer. Eagle apparently fills in the circle if 0 width. Changed it to smallest value and everything is okay as far as DRC. But package still appears different from what is in the package editor (not in the library, as mentioned before). 
Right clicking and selecting 'open package' has a package with ~20mils between pads, where the part on the brd has about 8mils.

The part is in the Allegro.lbr library.