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** Fixed at ArcGIS 8.2 **
The clip or intersection operation in the GeoProcessing Wizard crashes ArcMap.
This is a known issue caused by the presence of a coverage annotation layer within the map document.
If you don't have a coverage annotation layer in your map, see the Related Information section.
This issue has been addressed in ArcGIS version 8.2
If there are any coverage annotation layers in your map, you must remove them before performing a GeoProcessing wizard clip or intersect operation.