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** Fixed at ArcGIS 8.2 **
ArcScene may fail while exporting to VRML when using the GeoVRML output option.
This occurs when a raster layer is in the scene and the VRML export option 'Use GeoVRML extension' is enabled, and 'Indent text for readability' is disabled.
Enable the VRML export option 'Indent text for readability.'