Although I know Dr Price is aware of this, I think it's worth mentioning for the good of the thread: there is a shortcoming to the arguably awesome and elegant ArcMap's Make Layer From Selected Features command:
The layer created from ArcMap's create layer from selected features command creates a layer containing a hidden, uneditable list of objectIDs to be selected. (Anybody remember ArcPlot WRITESELECT?)
If anything changes the objectIDs in the source data (most edits will do this), the selection will be incorrect. This very elegant and handy workflow should be used with caution, and probably right away before the data gets modified -- if you open the mxd tomorrow after someone edited the file you may have an invalid selection.