Problem: Changing the raster layer in the Georeferencing toolbar list resets the display and the extent
A custom extent or a georeferencing environment has been established. Another layer is selected in the Georeferencing toolbar Layer option. The custom extent is reset and any control points are deleted. All of the displayed layers then refresh.
This is a known issue in ArcGIS 8.1. Changing the layer in the Georeferencing toolbar list causes a full refresh of the ArcMap display canvas.
Solution or Workaround
There is no workaround for this issue.