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When you use the Buffer Wizard or Geoprocessing Wizard on an ArcIMS feature class layer or an ArcIMS image service layer's sublayer, or when you right-click an ArcIMS feature class layer and choose Export Data, the default output type chosen by the function is incorrect.
For example, in the two wizards, when you get to the final panel of the wizard, the wizard correctly chooses your TEMP folder (or the last place you saved data in your current ArcMap session) as the default output location and correctly inserts a default name, BUT the output type defaults to a personal geodatabase, which of course won't work because the default output location is a folder. If you press Finish you get an invalid output data message. The same thing happens with Export Data; if you right-click an ArcIMS feature class layer, choose Export Data, then click OK without modifying the output it defaults to, you also get the invalid output message.
The default type was set incorrectly by ArcMap.
This problem was resolved at version 8.1.2. If you are using version 8.1 or earlier, follow the procedure below to set the data type of the output; do this before saving or exporting.