thanks for replying Zhang,
I forgot to mention that i am using arcgis server 9.3 with image server extension...
I just found out that you can pansharpen 2 image services, 1 service for multispectral and 1 for panchromatic, using ArcGIS 10. Use the Image Analysis Tool to pansharpen these 2 services. this cant be done in ArcGIS 9.3.X...
Please correct me if iam wrong...
thanks