A line element doesn't have a well defined normal. Just supply ACCUDRAW_SetXAxis and let AccuDraw come up with the full rotation by taking into account the current "base" rotation.
The flags you specify tell AccuDraw whether to look at the orientation parameter at all as well as how to interpret the void*, so ACCUDRAW_SetNormal and ACCUDRAW_SetXAxis are mutually exclusive, either the DVec3d you supplied is meant to specify AccuDraw's x-axis, or it's meant to specify the z-axis, it can't be both.
* @Param[in] orientation a RotMatrix, an array of 3 unit vectors of type Dpoint3d, or a single unit vector of type Dpoint3d, to be
* used to define AccuDraw's drawing plane orientation. This is used if flags has
* ACCUDRAW_SetRMatrix, ACCUDRAW_Set3dMatrix, ACCUDRAW_SetXAxis or ACCUDRAW_SetNormal set.
NOTE: In the call below, pt1 will be ignored as you didn't include the ACCUDRAW_SetOrigin flag; I don't know what you intended here.
mdlState_setAccudrawContext(ACCUDRAW_SetXAxis, &pt1, NULL, NULL, NULL, &xAxisVec);
* @Param[in] origin AccuDraw's origin point. This is only used if flags has ACCUDRAW_SetOrigin set.
HTH
-B
NOTE: Tools typically do not call mdlAccuDraw_setEnabledState(true), AccuDraw will automatically enable when your tool starts dynamics...