shrug-l: KML files with ArcInfo 9.1

[Mckee,Kathleen A]

Hello all, 

I am trying to use KML files in ArcGIS --  would like to convert them to shapefiles so I can edit/merge polygons made in Google Earth. 

I downloaded a 3rd party utility from ESRI downloads - KML2SHP_Converter.zip - but I cannot get the shapefile projected, not sure if it's a prob with the file the utility created or something else.

Does anyone have experience using KMLs in ArcGIS 9.1? Know of a good utility to convert KML to SHP files? 

I will upgrade to 9.3 but trying to get things done before that.

Thank you,
Kathleen  McKee 
UF Water Institute
http://waterinstitute.ufl.edu