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A couple of points may be a problem:
a. possible that the CD you got Arcview1 off of has a defective copy of the
software? try another cd, or go into www.esri.com and download a copy of the
software.  Jason Simpson (systems manager here) pulled drg with lancaster CA on,
called up arcview and a topo from that cd and it worked fine.
b. next catch - you need to have right hardware, enough RAM, etc. - step a.
above was done on a pentium with 32MB RAM.
c. any image software that will read tiff should be able to handle the drgs -
e.g., photoshop does.
Mary Larsgaard
Map and Imagery Lab
UCSB