How to open an AutoCAD DWG file in Arcview 9.2

Option 1:

Using ArcCatalog, highlight the file just like you would a shape file and drag it into the mxd. Or you can click on the file in ArcCatalog and it will break it into it's constituent entities; point line and polygon. You can only bring in entities from model space.

Option 2- See Screen Shot:

Here's another method to import CAD entities into GIS:

In ArcToolBox click on Conversion Tools, Go to Geodatabase. Then click on Import from CAD. This gives you a dialog box that converts CAD entities into a ESRI GeoDataBase (GDB). Then bring the .GDB file into GIS.