[OS X TeX] including a graphics file

[Luis Fernando Sequeira]

In addition to the several pertinent observations and recommendations: try using xelatex.
It works fine with pstricks, with pdf files (and also I believe eps), and more. It is a 21st century tex engine.

Another modern alternative is lualatex. 

The traditional latex and pdflatex engines also lack support for things like Unicode, too. 
May not make a difference to those only using English, but there is a whole world out there.
 

Regards

Luís Sequeira