Create a polygon of your image area and use Spatial Analyst>Extract>Extract by Mask. If you need a world file you might need another process. I think you did it in Catalog at 9.3, but now with GDAL as the base I think you might get one by default with a tif. Don't know if that "clipping geometry" option is new, I always thought that tool was useless as it only could extract square extents. I have definitely never seen the other option put forward using a selected graphic. Thanks Robert.