I strongly recommend using
ArcMap to georeference images, rather than the older means in ArcInfo. ArcMap allows the user to either
georeference an image using ground control points, or to georeference one image
to another, a feature not available in ArcInfo. The user interface and tools available in ArcMap are also
superior. I haven’t gotten around
to writing these instructions yet; however, an excellent resource has been put
together at the University of Alberta.
Take a look at these instructions, and use the ArcMap help pages, and
you should have no problem. Please
be sure to read and understand the difference in ArcMap between a transformation (a temporary georeferencing, good only for the
current session) and a rectification
(a permanent georeferencing that creates a new, georeferenced image).
Georeferencing an Image in ArcGIS 8.1