I wish to bring these back into Arcmap as the original files are missing. I've converted it to a GIF, then a layer and geo referenced it, but I am struggling with where to go from here. I have two problems:
I wish to clip it, however it is coming up with it not being a feature layer.
I need to also use the legend as a colormap of some sort to convert the data back to being meaningful.
1.) With rasters (ie. your georeferenced GIF) you need to use Extract By Mask, not Clip. 2.) You'll have to reclassify your image into meaningful categories. You might want to think about using Maximum Likelihood Classification to group together similarly colored pixels.
Read this page about creating signature files. Basically, if you know what classes you want the image to be classified into (ie. the colors on your original map), then draw polygons to use as samples for the classification, and use the Create Signatures tool to make the signature file.