When dealing with very big raster files in ArcGIS (like jpeg, TIFF, MrSID, GeoTIFF etc..), there are several considerations/things you can do to make life easier. So, without further ado, my guide to dealing with giant images in ESRI ArcGIS:
Before you begin:
1) Set up your layouts, ie. how your map will look, before you even begin. Remember, once the raster has been added, everything will slowwwwwww dowwwwwwwn.
Adding the Raster to the ESRI ArcGIS data view
1)In Data view add the raster image. BUILD PYRAMIDS! Do not ignore this step, it can make matters go from extremely awful to merely agrivating when it comes to speed. Remember, the pyramids were not built in a day, sometimes building pyramids takes a while. So be patient, you might even think the system is hanging, it will take so long.
2) Choose your actions carefully. You may wish to plot out on paper what you are going to do. This is because doing anything really slows you down. Even using the pan tool in ArcView can take 3-5 seconds or even more!
3) In layout view click on the data view pane, right click and select - Draft mode - just show name (unless you need to see the view for adding labels etc...). This will speed things up extremely
4) Don't fret ArcGIS is just a program.
5) Do not run screaming from the room.
