||I'm running ArcMap 9.0 and having this same error. I've cleared out my raster proxies, although I'm not sure that's the problem. None of my images have read-only permissions, so there should be no need to use the raster proxies.
As of right now, I can't load any raster images (jpg, tiff, img, or GRID) to an ArcMap document.
Can someone explain why, if ESRI knew this was a problem ever since 8.0, it took them until 9.2 (which I don't have) to fix this problem?
Also, any other solution ideas short of uninstalling the software?