Here is what Melita Kennedy gave in response to a similar question I had about converting Angular Units (degrees) into Linear Units (km, miles, meters, feet, etc.):
"I know the 3D team calculates a conversion value when horizontal coordsys is geographic to match up with the z values. It helps that data is usually large scale, so you can make an assumption. A rough equivalency is that 1 deg north-south is about 110 km. However, this only holds east-west at the equator. A rough estimate for east-west is 110 km * cos(latitude). Thus, at 60N or 60S, a degree is around 55 km. How the 3D team balances that out, I don't know."
Latitude is the Y coordinate. You should not use the VBA method of extracting point data anymore, because at ArcGIS 10 it does not work in the field calculator, only Python will work. So for Python using Melita's formula your Y coordinate would be:
110 * cos(!shape.Y!) * #unit_conversion_factor#
Replace the #unit_conversion_factor# above to be the unit conversion factor that will convert from km to the linear units that you ultimately want. For example, km to meters is 1000, and km to feet is approximately 3280.838862.
Edit: (This is backwards from what you want to do. Sorry.)