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Attempting to create an ArcMap Service with a map document containing an invalid picture element causes ArcIMS Administrator to hang.
ArcMap Server requires that the ArcIMS Administrator has access to all data, including any raster data used for a picture element added to the map document layout.
If the picture element points to a file that no longer exists or is no longer in its original location, the map can not be served.
In order to identify whether an invalid picture element exists, open the map document. The following error message indicates an invalid picture element, 'Invalid Raster Dataset. Failed to insert picture element.'
To resolve this, either embed the picture with the Map document before serving or ensure that the Map document can read the data (the file is in the original location).
If the data is no longer available, the picture element will have to be deleted from the map and the map re-saved before serving.