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How do I cluster XY point data? (ArcGIS 9.3)

I have a whole bunch of icons displaying on a map, I want these clustered together as was suggested to me for a different question here... ArcGIS 9.3. How do I increase Picture Marker Symbol performance?

A link to an example was provided but I'm not really sure where to begin. I'll preface this by saying I'm a programmer way before I'm a gis person.

What I want to know, in total noob terms, is how can I cluster my icons for XY events on the map?

Thanks!

EDIT: Forgot to mention, this is for a C# web ADF GIS portal... If it makes any difference.

Is this even possible? I can't seem to find anything for doing this with 9.3 adf.

Carter
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