Our mg2 sid files which were common in 2000 work just fine in 10. As a workaround, if your problem sid files contain their world file information in the header, and you have a world file, you might get rid of the latter and see if that works. Alternately if there is no world file you might create one and see if that works. I know this seems crazy, normally the only issue is which does the software read first. But we just had a case where jp2 files with header and world files with the same world information, displayed properly in 10 and not in 9.3x and other software, and the solution for that was just getting rid of the world file. The problem was tracked down by our vendor to the particular build of GeoExpress they had used, and GeoExpress is also the creator of sid files. The odd thing was I could use my version of GeoExpress Tools to convert these jp2s to sids, but then I had to use the world file during the encode to get sids that would work in ArcMap, otherwise they failed.