000175 : The project file format cannot be recognized. Please use a workstation-style projection format
Make sure that projection format is of workstation style with a .prj extension.
The best way to create a PRJ file is to open a simple text editor program (Notepad, WordPad, TextPad, and so forth), enter the projection definition, and save the file with a .prj extension. See the desktop help for Define Projection (Coverage toolbox) for more details.