OK Bjorn,
A little more information, we have been trying to make adjustments on our server, and still can't get it to display correctly for point features, it will display fine for polygons, both in the same projection. We have tried changing our point features to web merc, and wgs84, etc. No change on the display.
The layer is an event layer created from a query of an sql database with lat/lon coordinates. Our event layer is displaying the points fine and in the correct location, and automatically updating as the SQL database gets updated. So that part we have working correctly, however the popup is not grabbing the X,Y coordinates of the point. The popup thinks the X,Y are both 0,0 so the display is off the coast of Africa. If I click on a polygon in the same map service, the popup reneders correctly, then if I click the map again, the popup displays where I click the poly and renders the popup where the last popup was rendered. So somehow the x, y parameters from the event layer is not being passed to the popup action script, but is rendering the graphics correctly.
Any ideas would be greatly appreciated.
Thanks,
Don