I lost? Wait a second, I'm not supposed to lose. Let me see the SCRIPT

I hope this link works for you guys, it worked for me. I was able to take information (i.e. geocoded customer data) that was produced in Google Earth and convert the KML file to SHP. The KML needed to be loaded into google earth and re-saved, but it worked like a dream.
It was built on the Arc 9.3 engine but it worked totally fine with 10, Download the file to disk and simply follow the easy to understand PDF instructions and you can be going in less than 15 mins.