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When using the Define Projection wizard (coverages, grids, TINs), if you select the geographic projection, and you select any spheroid, this error message occurs:
"An error occurred while running Define Projection Wizard (coverage, grids, TINs). Unloading the tool."
This issue was introduced with ArcGIS 8.1 Service Pack 1.
This issue has been addressed in ArcGIS Version 8.1.2.