I am still curious as to why you can't export as AutoCAD R14 in Illustrator and get it to import correctly, is it possible to "explode" or flatten the file so it becomes a regular 2D drawing.
Edit: I searched for similar issues and found this, it may not apply completely as T2Laser works with most objects but a similar technique or clicking that export box may be the solution. Please let us know.
For those of you who may have the same issue as me, what you need to do in Illustrator is use the Object»Path»Simplify menu item, and then check the "Straight Lines" option. You may need to use the "Object»Paths»Add Anchor Points" menu item a few times before simplifying to straight lines gives you enough detail.