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This problem is addressed in ArcGIS 8.1 Service Pack 1. See the Related Information section to download this pack.
When using the edit tool to move the vertex of an ellipse, the rubberbanding sketch segment for the elliptic arc appears OK, but when using Finished Sketching, the geometry of the ellipse changes compared to the rubber-banded version of the geometry.
Service Pack 1 corrects this problem.