Attached are some screenshots showing the "shifts" I'm seeing. "Buffer_Shift_1.PNG" and "Buffer_Shift_2.PNG" show the before and after of the buffer tool. I placed the buffer point directly on top of the blue symbol, but it displayed several feet off. And then, after clicking "Run" on the Buffer Point window, the pin symbol jumped way over to the west.
"KMZ_Shift.PNG" shows the difference between the same layer when it is displayed as a layer package vs. a KML. The blue point on the left is KML and the one on the right is LPK. The yellow line is a measurement I took, which you can also see didn't display where I actually clicked.
"Transformation.PNG" is just a screenshot of the 3D coordinate system settings. I've also noticed that these settings aren't being saved across Explorer sessions, I have to keep resetting them.
Here is the coordinate system properties of the data frame containing the layers the the KML/KMZ was created from:
NAD_1983_StatePlane_Indiana_East_FIPS_1301_Feet
Projection: Transverse_Mercator
And the coordinate system in the layer properties (in ArcMap):
Projected Coordinate System: NAD_1983_StatePlane_Indiana_East_FIPS_1301_Feet
Projection: Transverse_Mercator
Here is what is listed in the Map Properties of Explorer:
Coordinate System: GCS_North_American_1983, Transformation: NAD_1983_To_WGS_1984_5
And in the layer properties in Explorer for the layer package (the KML doesn't have a coordinate system listed under it's layer properties):
Coordinate System: NAD_1983_StatePlane_Indiana_East_FIPS_1301_Feet