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Cheers Stefan, that was the problem. There was a space in one of the folder names. I moved the image file and now its working great.
Still not a clue about the extra blank lines though. when i cut that whole section out and build, the next section aligns as it should...

It is moments like this I realise how much I hate computers.
I tried outputting a jpeg version of the graph from gnuplot and loading that in, and it instead put a box on the page with some really large text over it (not the graph I was expecting). I decided to call it a day and go to bed. After a ...

Ok, i tried using graphicx and still no luck, it just posts the caption and nothing else because it cant do the EPS file, throwing this error message at me
! LaTeX Error: Unknown graphics extension: .eps.

Hi
I recently started using LaTeX (MikTeX with the RevTeX 4 style package edited in TeXnic centre) to write a lab report, and whilst I like it so far, I have come across a couple of issues.
Firstly, i have put

\usepackage{graphics}

at the top and then my code for a figure is

\begin{figure}[h ...