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Mr.SID MG3 images are not supported by ArcIMS Image Server 4.0, 4.0.1 or 9.0.
MG3 files are supported by ArcIMS 9.0 using the ArcMap server on Windows only
The needed DLLs provided by the vendor are still in a beta version and cannot be used by ESRI in developing a product.
Since support of the images by ArcIMS Image Server is not possible at this time, the following workarounds can be used: