Before you solve or write a *.k file in /PREP7 do the following:
CSYS,0
nall
nrot,all
This will correct the issue. If you need to rotate nodes to create constraints or couples you will need to figure out a work around which is kinematically equivalent. Dyna has many options available.
Also, it looks like your model is symmetric about the XY plane...why don't you use symmetry?