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Are your X,Y data in geographic (longitude, latitude) or projected (eg. meters) coordinates?
If XY data are in geographic coordinates you should select Geographic Coordinate System when creating shp (most probably WGS 1984).
If it doesn't work, check if the coordinates in table are correct (numeric, do not have any spaces or other strange characters).
Hi m.gasior, Thanks for your response.
1) I was not sure which coordiate system I had. But, I used the "Zoom To Layer" command and I got the points appeared on the map.
2) I brought in a jpg file of the points site to this map. I tried to use "GeoReferrence" to match the 3 corner points with the XY figure by using the 3 "Control Points" to adjust the 2 features spatially. Each time I clicked on the Control Points, I got a skewed jpg figure - see the attached file. Do you know why I got the skewed jpg figure? How can I cure this problem?
Please help and advise me on solving this new problem.
I was not sure which coordiate system I had.
I think, it's essential to know which coordinate system you have (at least if it's geographic or projected) when importing X,Y data.
@2) It's hard to say what you do wrong.
I suppose, you should follow the georeferencing help. There is step by step instruction how to georeference raster.