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ArcCatalog fails to start when the user clicks on the ArcCatalog icon on the ArcMap standard toolbar.
A raster layer in ArcMap's table of contents is stored in ArcCatalog's default drive location.
Start ArcCatalog from the Start menu: Start > Programs > ArcGIS > ArcCatalog.
Optionally, download and install the Service Pack 1. Click on the link in Related Information, below. Click on ArcGIS-ArcEditor and under Version 8.1, select ArcGIS Service Pack 1.