Georeferencing Tool Help

Discussion created by wek on Mar 25, 2013
Latest reply on May 8, 2013 by wek
Hello All   I've just installed ArcMap 10.1 Desktop and am having frustrating time using the georeferencing tool. 
It has always been straightforward using it in previous versions.  I have a reference layer in the background, zoomed to the approx extent of the jpg I want to georeference.  Then, I add the jpg I want to georeference but can't get fit the source layer to the current display extent, as selecting the "fit to display" tool results in the image initially coming in stretched out and distorted.

The only workaround to get the image into the approximate right etent is time-consuming and not optimal - physically dragging it to the same extent as my reference layer and then keep fiddling with the scale tool.  But of course this does not create tiepoints and is only somewhat adjusting it not georeferencing it.  I can't find any place to check or uncheck settings to stop this.  Also, when I create a link from the target to the reference layer, the link sometimes shows up in the links window and then when I create a second set of links, the first set disappears.  I have played with checking and unchecking the "update display" and "auto adjust" options as well.

Becoming exasperated, any help greatly appreciated.  Thank you in advance.