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When trying to add a JPEG image to ArcMap, the following error message may appear:
"Raster Data Objects Error
Invalid raster dataset. Failed to create raster layer"
Most likely the JPEG raster file is a 'progressive JPEG'. This is a type of JPEG that renders itself in low resolution first, and then successively re-renders itself at increasingly higher resolutions. This type of JPEG is not supported in ArcGIS.
Use a third-party image application that can read the progressive JPEG format and allows it to be written as a non-progressive JPEG file.
To be sure that the image is non-progressive, convert it into a format that does not support the progressive function, such as BMP, before saving it as a JPEG. Please note, however, that this method may cause some loss of information.
ESRI cannot provide detailed instructions or support for implementing third-party products. Please refer to the Web site of the third-party product for specific information and instructions.