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This is a bug in ArcGIS Server version 9.2 and has been resolved in version 9.3.
The coordinate system of the source address locator and the coordinate system of the source map document for the map service do not match.
Use the same coordinate system for the address locator and the map document's data frame. The address locator uses the coordinate system of the reference data used to build the locator. For more information about setting the coordinate system for the map document, please see the ArcGIS Desktop Help topic in the Related Information section below.