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An image or CAD file, which has a world file associated with it, does not draw in the expected location. It is as if ArcView is ignoring the world file.
The world file has an extra TXT file extension appended to its name. For example, tiffimage.tfw.txt or cadfile.wld.txt should be tiffimage.tfw and cadfile.wld. Windows Notepad and WordPad utilities add a TXT extension to all files that are created within these applications. ArcView will not recognize these files as world files.
Use Windows Explorer to remove the extra TXT file extension from the world file.
Make sure Windows Explorer is not hiding file extensions of known file types. To check your settings select Options from the View menu.