I am using ArcGIS v9.2 with the extension Spatial Analyst and 3D Analyst and the latest patches and service packs. While I can still display raster images, I cannot use any of the tools in either extension or for that matter any operation that involves raster processing. For example, when I try to include a raster in ArcPad, I get a message that the raster processing failed. When I try to do raster algebra with any of the tools, I get an unspecified error message. If I try to use any of the interpolation functions (krige, nearest neighbor, etc), I get an unspecified error.
Does anyone have any idea what can cause such a widespread failure of this basic GIS function?