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Adding any raster produces the following error message:
"Invalid Raster Dataset"
When opening map documents that contain raster data sets, all data sources for the raster data sets are broken.
Another imaging application was installed on the computer that conflicts with the file rdo.dll.
regsvr32 "C:\Program Files\Common Files\ESRI\Raster\bin\ntx86\rdo.dll"
The above applies to Version 9.3.1 and earlier. The rdo.dll file does not exist in Version 10 and higher.