When installing the server component of Image Server (this is the 9.3 technology working within V10) ArcGIS Engine needs to be installed. This is required primarily to enable the Service Provider to read some formats such as Grid. The distribution should contain ArcEngine Install, which will need to be installed prior to the Server Part of Image Server. Engine is not required to install the Image Service Definition Editor. Note both of these are included primarily to enable users of 9.3 technology to continue editing and serving existing Image Service Definitions. At V10, is it recommended to use Mosaic Dataset that can be edited using the core ArcGIS Desktop (Editor or Info). Mosaic Dataset can be directly accessed by ArcMap applications with desktop performing all access and processing, or served as Image Services (requires license for ArcGIS Server Image Extension)
