** This issue is addressed in ArcGIS 9.0 Service Pack 2 (SP2) **Some VRML models cannot be imported if they contain an inline clause or are UTF-8 encoded.
Cause
This is a known issue.
Workaround
** This issue is addressed in ArcGIS 9.0 Service Pack 2 (SP2).
Click on the link in Related Information below and download Service Pack 2, if necessary. **