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It finally worked! I removed the package \graphics from the folder and it worked. I do not know why this package was there if \graphicx was in use.

I cannot stress enough how much I thank you . Thanks for your time and your advice.

I'm having the same trouble after changing to Live TeX and using your figure.

I hope I'm marking this correctly as code. I attach the .log file

Thanks again,
Adazea

% !TEX LaTeX
\documentclass[12pt]{report}
\usepackage{epsfig}
\usepackage{color}
\usepackage{graphicx}
\usepackage{enumitem ...

Thank-you very much Ijon and Stephan for your help.
I really think MikTeX has an issue, it works with an older version.
I'm changing to TeXLive.
Adazea

I'm having troubles with \includegraphics

\documentclass[12pt]{report}
\usepackage{epsfig}
\usepackage{color}
\usepackage{graphicx}
\usepackage{enumitem}

\begin{document}

\begin{figure} [htbp]
\centering
\includegraphics[width=100mm]{cubicroot.ps}
\caption{ $f(x)=x^3-3x+1$.}
\label ...