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Why can't pyramids for ECW, JPEG 2000, or MrSID files be built?
It is not possible to build pyramids for ER Mapper ECW files, JPEG 2000 files, or LizardTech MrSID files. All of these formats use the wavelet compression algorithm, which has internal pyramids. Therefore, users are not allowed to build any additional pyramids.
In ArcGIS 10, pyramids can be built for JPEG2000; although they are not required, it is now possible.