I have three layers I need to try match up at the borders. This is not a projection problem, all layers are projected to Albers NAD83. The base layer (Green) is 30m DEM, with a US boundaries layer on top of the DEM and finally a polygon "layer of interest" on top (Red). As you can see in the figure below, none of these layers match up at the borders.
What is the best way to get these layers to match up in ArcMap 10.1? This is mainly for aesthetics, as I have it the red layer is transparent and it just looks bad.
So figure 2 (bottom) is what I have done thus far. (Note: I have changed the colors around in figure 1 just to make the different layers easier to distinguish for you all.)
As you can see, the problem with the layers lining up isn't all that bad at this scale.. but I'm picky like that. Figure 1 is zoomed in to an area on the coast of South Carolina (apologies for no scale bar).
@Kevin, the state boundaries were requested because this project spans many states and the hillshade (while not required) was also requested and adds some pizaz.
Thanks everyone for comments so far.