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Error: Invalid raster dataset, failed to create raster layer - The selection cannot be displayed in the current view

Error Message

An  error occurs when attempting to add a raster dataset into ArcMap:

"Invalid raster dataset, failed to create raster layer"
Another error occurs when trying to preview the same raster dataset in ArcCatalog:
"The selection cannot be displayed in the current view"
Note:
The content in this article pertains to ArcGIS versions 8.x and 9.x only. Later versions of ArcGIS may contain different functionality, as well as different names and locations for menus, commands and geoprocessing tools.

Cause

If you are able to use the file in ArcInfo Workstation or ArcView 3.x, the problem may be a corrupt or conflicting auxiliary file (*.aux). The offending .aux file may be in the same location as the raster, or it may be in the raster proxy location. The auxiliary file is a binary file that stores various types of information, including statistics and spatial referencing.

Solution or Workaround

Note:
Before executing this procedure, ensure that all hidden files and folders and file extensions are showing.
  1. Use ArcCatalog to copy the raster into a new directory.
  2. Start Windows Explorer and navigate to the new raster.
  3. Delete any *.aux files in the directory where the new raster resides.
  4. Add the new raster to ArcMap or preview it in ArcCatalog. Calculate new pyramids if prompted.
Note:
If the new raster doesn't return this error, and it is necessary to maintain the original raster in it's original location, delete or rename the .aux file. It is also advisable to inspect the raster proxy folder for any conflicting or corrupt .aux files for this raster.

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