point distance/near analysis units?

hi all, have been learning lots here, will have more Qs for sure too...

I'm running both point_distance and generate_near_table on a couple of point layers. I often specify a search radius of say 1 or 3km, which is easily set, and sometimes I don't set a search radius and take everything back I can get. either way, the distance columns in the resultant dbfs are in what I think decimal degrees distance; how can I get back a km distance value? I don't see an option in either dialogue for specifying units, but, I'm a bit new to this.

thanks very much,

cj