10.3.1 - Same problems described here. Usually it just doesn't do anything no matter which options I select, Rectify or that other one.
So you can't even have a 1 or 2 degree rotation or it messes up the georeferencing, would that be accurate to say?
You might check out these blogs on georeferencing:In ArcGIS 10, raster data in TIFF format may be shifted or in the wrong geographic locationHaving problems georeferencing your raster image?
I've been having issues as well, but for me I don't seem to be able to get the georeferencing tool to work. It just stays greyed out.
I would first off recommend installing service pack 2 for ArcGIS 10. It addresses some spatial reference issues.You can see the list of fixes in the service pack here: http://downloads2.esri.com/support/downloads/other_/ArcGIS-10sp2-issues.htmI would also suggest trying to rectify the image to a different format such as IMG to see if the issue is format specific.
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