Software Alert - Microsoft hotfix causes File Geodatabases created on a network share with ArcGIS 10.0 and 10.1 to be unusable.

Microsoft has released a hotfix rollup that has been found to cause file geodatabases created and stored on a network share to become unusable.

The update (KB2775511) applies to Windows 7 Service Pack 1 and Windows Server 2008 R2 Service Pack 1, and addresses approximately 90 issues with the Windows Operating System.

If you have the update installed on your machine, and create a new file geodatabase on a network share, it will not be usable. In addition, attempting to add a new field or use the field calculator on a network-stored Geodatabase feature class will cause the Geodatabase to become unusable. Locally-stored File Geodatabases are not affected. Affected computers will return the following error message when attempting to create feature classes or other objects with in network-stored file geodatabase:

"Failed to create feature class.
The item was not found. [ItemType:
{70737809-852C-4A03-9E22-2CECEA5B9BFA}]
"

This has been logged as bug NIM090672, and is currently being investigated by Esri’s developers. A fix is expected to be released soon to address the problem. Until this fix is released, several workarounds have been identified to get around this issue.

The first of these workarounds is to uninstall the hotfix bundle from your machine(s). However, we appreciate that this will not be feasible for all organisations due to IT security policies.

The second workaround is to create your file geodatabases locally before moving them onto your network share location. However, it has been found that this workaround does not work when creating raster datasets. If your IT policies do not allow you to remove the hotfix bundle and you need to create raster datasets, you will need to work locally until the fix for this issue is released.

We are actively monitoring the status of this issue, and will issue an update on the matter when a fix is released.