Have You tried to put clocklcopy.eps in the same directory
as Your tex-file(s)? There is a security problem with relative paths
for the standard call of dvips...
But You can add the option -R0 to the dvips call, which allows relative
paths...
there's a pstricks-package that can do this (pst-abspos), but it's not implemented into MiKTeX, so You have to install it on Your own! ( http://perce.de/LaTeX/pst-abspos/ )
You're using the MiKTeX Net-Installer (setup-2.5.2545.exe), which downloads all packages for offline installation... but there's no need for downloading all packages, if You're connected to the internet!
To update Your running system, You just have to call
...MiKTeX 2.5 has the ability to install most packages on its own by loading them out of a local or an internet package repository - So normally You don't need to download and install packages on Your own!