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Error: Saving Data: Output name is not valid

Error Message

When using the ArcMap GeoProcessing Wizard and outputting to an ArcSDE feature class, a message box may appear titled "Saving Data" with the message "Output name is not valid".

Cause

This error message appears if:

1) You save GeoProcessing output to an ArcSDE feature class contained within a featuredataset.

and

2) This featuredataset is the current Save Data location. (The Save Data location is the last location to/from which you added or saved data.)

and

3) You edit the default output feature class name from the GeoProcessing Wizard (e.g., Dissolve_Output.shp).

Solution or Workaround

To avoid this error message, don't modify the default output feature class name directly from the GeoProcessing Wizard.

Instead:
a) Click the Browse button.
b) Change the feature class name in the Saving Data dialog box.
[O-Image] SDE Geoprocessing Output