In ArcToolBox, when attempting to define the projection for a coverage or grid, from another coverage or grid, an error is generated "An error occurred while browsing for data".
Knowledge Base article 27108 provides a workaround, but a text projection file must be created in NotePad, with the correct parameters, that can be accessed through the Define Projection Tool.The other workaround, of copying the prj.adf file from one dataset to another, is only shown to the most experienced users of the software!