[OS X TeX] trouble with eps in "TeX and Ghostscript"

[stephenmoye at cox.net]

I'm trying to include an eps (via epsf) file in a plain TeX document, using "TeX 
and Ghostscript" in TeXShop. I have the eps file in the same directory as the 
TeX file -- so there ought to be no problems finding it. Below is the output 
from the console. The question is, what does "Could not open file" mean? 
Could the file not be found? Is there something about the file that renders it 
unopenable? It is a simple Illustrator eps. The odd thing is that I have no 
problem with this at home, only here at work. Any pointers would be very 
welcome.

%%%%%%%%%%

### This is /usr/local/teTeX/bin/powerpc-apple-darwin-current/altpdftex, 
Version $Revision: 2.15 $
### /usr/local/teTeX/bin/powerpc-apple-darwin-current/tex special.tex
This is TeXk, Version 3.141592 (Web2C 7.5.2)
 %&-line parsing enabled.
 (/usr/local/teTeX/share/texmf.tetex/web2c/cp8bit.tcx)
(./special.tex (/usr/local/teTeX/share/texmf.tetex/tex/generic/misc/epsf.tex
This is `epsf.tex' v2.7k <10 July 1997>
)
! Could not open file \epsfxsize .25in \global \def -1{72}\global \def 
-73{72}\
global \def 73{540}\global \def 0{720}\def [{[}\def xxxx.eps{xxxx.eps}\let 
\nex
t =\openin \epsffilein = \errhelp = \epsfnoopenhelp \errmessage {Could not 
open
 file , ignoring it}.
\epsfgetbb ...in file #1; using defaults}\fi \fi }
                                                  \closein \epsffilein \fi \...

\epsfnormal #1->\epsfgetbb {#1}
                               \epsfsetgraph {#1}
\epsfbox ...tbb \else \let \next =\epsfnormal \fi 
                                                  \next {#1}
\epsfgetbb ... \errmessage {Could not open file #1
                                                  , ignoring it}\else {\char...

\next #1->\epsfgetbb {#1}
                         \epsfsetgraph {#1}
\centerline #1->\line {\hss #1
                              \hss }
l.26 ...sfbox{\epsfxsize.25in \epsfbox{xxxx.eps}}}
                                                  ! Extra \fi.
\epsfgetbb ...s}\fi \fi }\closein \epsffilein \fi 
                                                  \epsfsetsize \epsfstatus {#1}

\epsfnormal #1->\epsfgetbb {#1}
                               \epsfsetgraph {#1}
\epsfbox ...tbb \else \let \next =\epsfnormal \fi 
                                                  \next {#1}
\epsfgetbb ... \errmessage {Could not open file #1
                                                  , ignoring it}\else {\char...

\next #1->\epsfgetbb {#1}
                         \epsfsetgraph {#1}
\centerline #1->\line {\hss #1
                              \hss }
l.26 ...sfbox{\epsfxsize.25in \epsfbox{xxxx.eps}}}
                                                  
? 
? 

             


-----------------------------------------------------
Please see <http://www.esm.psu.edu/mac-tex/> for list
guidelines, information, and LaTeX/TeX resources.