ArcMap application error or Antarctica disappears when reprojecting

Error Message

This problem is addressed in ArcGIS 8.1 Service Pack 1. See the Related Information section to download this pack.When reprojecting world data, Antarctica disappears or a fatal error occurs.

Cause

This is data-specific. In this case, the "bottom edge" of Antarctica is a two-point arc connecting -180,-90 and 180,-90. The clipping that occurs when reprojecting does not occur correctly.

Solution or Workaround

1. Add two or more points to the polygon on the arc that is at -90 degrees latitude.
2. Install Service Pack 1 for ArcGIS 8.1.