I would like to import E00 file format into ArcGIS Explorer Desktop, however it seems to be such an old file format that I can't find a way to do it. Is there a tool for converting it to a format that Explorer recognizes?
E00 files are indeed a very old format. You'll need to use ArcGIS Desktop for this: http://help.arcgis.com/en/arcgisdesktop/10.0/help/index.html#//001200000046000000.htm. That will give you either a "Coverage" or a "GRID" depending on whether the data is vector or raster I believe. From there you will need to convert the Coverage to for example a File Geodatabase which can be read by ArcGIS Explorer. In the case of a GRID file - you can either create a Layer File in ArcMap which references this GRID or alternatively convert to one of the many raster formats ArcGIS Explorer reads directly such as TIFF.