Is it possible to load external wms services into ArcMap and publish them in ArcGIS Server?
I have tried this and get the error that the layer type is not supported.
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The Esri FAQ: Should I cascade or embed one service within another? may be worth a read:
Generally, cascading map services is not recommended and could introduce unforeseen problems into both ArcGIS Server and ArcIMS environments.
A cascading service is the notion of a published map service being added to a map document (MXD) and re-published as a map service.
With the 9.3 release, it is not possible to re-publish a password protected map service through ArcGIS Server (even as the owner of the original service).
Some of the known issues with cascading services include: ...