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Images in Stateplane projected coordinate system don't display correctly.
The Stateplane projected coordinate system uses units meters to record its false easting and northing. When the image is projected to units feet, ArcInfo 8.0.2 DeskTop treats the easting and northing units as feet rather than meters. The result is an image that is placed in the wrong coordinate space.
This problem has been fixed in ArcGis 8.1. If you are running ArcGIS 8.0.2, use this workaround:
These values will be incorrect outside the 8.0.2 DeskTop environment.
If you attempt to add the image, in ArcMap, to a Stateplane data frame, the image will be projected on the fly to the Stateplane projected coordinate system and will display incorrectly.