An error occurs when adding SDC 1 format datasets to ArcMap

Description

After adding two or three SDC1 datasets, the following error message is displayed:

"ArcMap has encountered a problem and needs to close."

SDC1 datasets are found on the ESRI Data & Maps discs from 2003 or 2004.

Note:
Newer ESRI Data & Maps discs have a newer revision of the data that does not cause the problem.

Cause

Earlier versions of SDC, found in older ESRI Data & Maps media kits, are incompatible with newer versions of ArcGIS.

Workaround