Georeferencing problem (original) (raw)

I'm having a couple of issues georeferencing a scanned map of land lots to an accurate road layer.

First off, when I place links in some places to correctly warp the scanned map into the right position, it moves barely, if at all, and no matter how many links I place, I can't get the thing to move.

Secondly, georeferencing is severely distorting my image. Is there any way to fix this or make it less distorted?

I have screenshots, but for some reason they won't show up here.

I'm using ArcEditor 9.2, and I don't know if this is just a limitation of the software or if it's a bug or what. Any suggestions would be appreciated.