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Can ArcGIS 9.x encode MrSID files larger than 50MB?
No. The MrSID encoder extension is no longer available at ArcGIS 9.0 or subsequent releases. MrSID's with source files less than approximately 50MB can still be encoded using the 'Raster to MrSID' tool in ArcCatalog.
50MB is an average size. The actual limit is based on the number of rows, columns and bands in the uncompressed image.