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An Automation Error occurs when using IRasterImportOp to import ASCII, USGS, or similar files into TIFF or Imagine file output.
This is a known issue with ArcGIS 8.1
This issue has been addressed in ArcGIS Version 8.1.2.
In ArcGIS 8.1, import the offending files to GRID format first, then convert to TIFF or Imagine format in ArcCatalog