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Running the Windows Live OneCare safety scan utility damages the ESRI hive in the registry file. The specific Keys/Values are being removed by this utility are still under investigation; however, it has been determined that it causes problems when running tools that write to GRID directly or intermediately. Some of the tools that are affected include the Spatial Analyst tool, 3D Analyst tools, and any core raster tools that output to a GRID.
This issue also occurs in 9.3.1.
This is caused by running the Windows Live OneCare safety scanner, which is available on the Windows Live OneCare Web site.
The safety scanner removes items from the registry file that ArcGIS requires.
Run a Repair on ArcGIS Desktop. Examples below demonstrate how to perform a Repair for Windows XP and Windows Vista.
Note: The ArcGIS install disk is needed to perform both tasks.