For performance reasons, we do not densify (or generalize) lines when they're re-projected. Try densifying the data. There's a densify tool in the Editing toolbox.
Hi Curt, I just had a request from our local Ham Radio group to add the Maidenhead Grid to an online map (ArcGIS Online) that I set up for them. This term is new to me and I'm still just getting started in GIS. I hoped to find this ready-to-go in the gallery, but no such luck. Would you be willing to share your shapefile? Randy