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ArcSDE 9.0/9.1 stores spatial information with low precision while ArcSDE 9.2 uses high precision.
When creating a raster catalog in ArcSDE 9.2 server using the geoprocessing tool, ArcGIS automatically assigns proper X/Y domain for the geometry column. It assigns a domain that covers the whole horizon of the spatial reference if the column has a spatial reference. This allows raster datasets to be loaded to the raster catalog without going out of bounds.
However, when creating a raster catalog in ArcSDE 9.0/9.1 server, the X/Y domain is not properly assigned in most cases. Instructions provided describe how to assign the X/Y domain manually.
You may want to examine the extents of all the rasters you want to load and find the union extent beforehand.