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In the classified renderer dialog box, Raster Layer Symbology, there is a check box for a hillshade effect. In ArcGIS 9.1, this check box does not work.
Although the Graphic User Interface (GUI) was created with the check box in the dialog box, the code behind the GUI is not scheduled to be implemented until the next release of the software.
Use the Spatial Analyst extension to perform a hillshade effect.