One of the best all round third party extensions you can get for ArcGIS - lots of functionality is *Free*"
A collection of powerful data manipulation, topology and surface functions for ArcGIS "

New functions are:
- Map To Google Earth
- Feature Class to Google Earth
- Import from Google Earth
- Polygon Characteristics
- Perpendiculars from points to polylines
- ESRI TIN To PolygonZ
- Shape To ShapeZ
- Point To Multipoint
- Disperse Points
- Random Points On Polylines
- Random Points In Polygons

* New method (number of vertices) included in the Split Polyline function
* Create Centerlines and Aggregate Polygons functions added to the version for ArcGIS 8.x.
* Scripting and toolbox implementation of the Ungenerate function added.
* Two new options added to the Features To Bounding Rectangles function.
Improved is:
* Improved performance and ability to handle large datasets. Functions affected:
- Build TIN
- Build Thiessen
- Aggregate Polygons
- Create Centerlines
* The Clean Dangles function allows user defined Fuzzy/Cluster tolerance to be assigned - better user control over the function.
* Improved error reporting
* **Several Functions improved to handle datasets with Z or M values. In the previous versions the input Z(M) values were dropped .
Functions affected:
- Clean Polygons
- Clean Polylines
- Eraseo Batch Erase
- Clean Dangling Nodes
- Clip
- Batch Clip
- Advanced Merge
- Symmetric Difference
- Merge Layers
- Split By Location
Bugs fixed:
Point Intersection function produces incorrect results if a polygon dataset that have polygons with holes is used.
A licensing problem in the Scripting and ToolBox implementations in ArcGIS 9.0.
***Inability of some of the functions to handle correctly datasets containing true Arcs. Functions affected:
- Build Polygons
- Clean Polygons
***Some of the tools of the ToolBox implementation produce an Windows error if used within a script run from the command prompt. The results are derived, but the tool breaks up the script. Tools affected:
- Clean Polygons
- Clean Polylines
- Clean Dangling Nodes
- Clipo Erase
- Advanced Merge
- Symmetric Difference
- Thin Pointso Aggregate
- Interpolate Contours
- Create Centerlines
* Point Angle And Position function fails in some cases when the source paint dataset is a PGDB feature class
***Several functions fail if the output is File Geodatabase:
- Points To Polylines
- Points To PolylinesZM
- Points To PointsZM
- Points To Polygons
- Points To PolygonsZM
- Batch Drop Z(M)
- Batch Clip
- Batch Erase
** Only the version for ArcGIS 9.0 and above
*** Only the version for ArcGIS 9.2
One of the best and most useful functions that this extension has is 'Create Shapefile' inside ArcMap to create a new point, line or polygon.
For more information and to download this extension go to:http://www.ian-ko.com/