We are running ArcGIS 9.1 still through the regional Citrix environment. Create Fishnet option is not available in 9.l. However I was on the test panel for 9.2 in the citrix environment, so tried to use this tool. It did not come out in the proper location, even though I used our coordinates. I do not understand what goes in all the fields on the Create Fishnet screen. I will need to create a 5-mile grid of 7 columns of grids and 6 rows of grids. Then I will also need to create a 1-mile grid to overlay the 5-mile grid. I am not sure how to get started now.

You'll definitely want to consult the help files available with the Create Fishnet tool - specifically the document titled How Create Fishnet Works . For example, you need to explicitly define the X,Y coordinate points for the bottom left corner of the fishnet - that's the origin.

Another option for those who don't have ArcGIS 9.2 is to use the script titled "Create a grid polygon shapefile [FISHNET]" available for download from the ESRI Support Site - ArcScripts. It's title number 12807

I've found the Help does not explain what is required. Why don't these settings work?:
Fishnet Origin Coordinate:
X Coord: 132400 Y Coord: 861800
Y-Axis Coordinate:
X Coord: 132400 Y Coord: 861810
Cell Size Width: 24535
Cell size Height: 26670
Number of Rows: 3
Number of Columns: 3
(All other fields blank)

Or these settings??:
Fishnet Origin Coordinate:
X Coord: 132400 Y Coord: 861800
Y-Axis Coordinate:
X Coord: 132400 Y Coord: 861810
Cell Size Width: 0
Cell size Height: 0
Number of Rows: 3
Number of Columns: 3
Opposite corner of Fishnet:
X Coord: 206000 Y Coord: 941800

Environment settings: Mass State Plane meters

I typed in a file name with no path, and no default folder was utilized by the program.

As per the title!

You can add the x,y coordinates to the attribute table and then use them to label the cells. To add the coords, open the attribute table, add a field, make it short integer, right click the new field, select Calculate Geometry and then choose the appropriate property option (e.g., X Coordinate of Centroid). Do this for both the x and y coords. Note that you can choose what coordinates are calculated and what units are used. Once the coordinates are in the attribute table, you can use them as label fields like you would for other labels.