Frank, I really appreciate your reply.

I thought it was but, actually, it is a ".aux.xml" file generated by ArcGIS
9.3.1 during the georeferencing process.

http://webhelp.esri.com/arcgiSDEsktop/9.3/index.cfm?TopicName=About_auxiliary_files

So, it is impossible to preserve the georeference information- I have to
either:
rectify the image (save a new geotiff file) and gdal_translate to jp2; or

gdal_translate to jp2 and then re-georeference it.

Is that right? Thank you again.

Regards,
Nuo 

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