Raster image distorts basemap when trying to georeference

Discussion created by Becsy100 on Jun 27, 2014
I have a set of rasters, in Jpeg format, which I am trying to georeference. We use a satellite image as the base map. Every time I add one of these images to the mxd, when I 'fit to display' the basemap distorts slightly. It only happens with this one set of images. We tried putting the images into photoshop re-saving them but this doesn't work.
Does anyone know why, and how I can rectify this short of re-digitizing the images?