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When displaying multiple services in a Map control that is configured with ImageBlendMode = WebTier, cached map services that use an ArcGIS Server Local connection do not display. Instead, the Map displays the message, "<MapResourceItemName> Data Not Available", for the cached service.
This issue applies to Web applications built with the 9.3 Service Pack 1 version of the ArcGIS Server Web ADF for the Microsoft .NET Framework.
This is a known issue.