Problem: Altered extent of layers in instance upgraded from SDE 3.0.x to ArcSDE 8.1 for SQL Server
If you upgrade an SDE 3.x SQL Server instance to ArcSDE 8.1, your layer extents may be altered.
Layer extent data were not upgraded correctly by the automated ArcSDE upgrade process.
Solution or Workaround
Recalculate the layer extent for each layer using this command:
sdelayer -o alter -l <table>,<shapecolumn> -E calc