You write that your event layer reports:
X Field: Latitude
Y Field: Longitude
That would give you some problems, I might suspect.
the x values would be in your Longitude field, would they not?
and the y values in Latitude?
Are these really latitide and Longitude values in your table? The longitudes should be between 102 and 110, and the latitudes between 37 and 42 (for Colorado).
You cannot plot lat/long values into an Albers Conic coordinate space and expect usable results.
Plot to a so-called geographic coordinate system, then project it.
If the table values are much larger numbers than noted above, maybe they are indeed Albers coordinates. Then the question becomes: what Albers parameters are correct (central meridian, standard parallels, possible false eastings or northings)
Maybe, too, you have degree, Minute, Second values in you table? or Degree and decimal minute?
There are lots of variables just in getting your points created properly. It is not suprising later steps don't work if the first step is all wonky...