welcome to the forum! I marked the code in your example for better reading, and for direct compiling within the forum.
Just like Ijon, I tested your code and cannot see the issue. It runs fine when I use some example image. Feel free to test yourself with the forum compiler:
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
It seems, you have several very, very, very old package files in the document folder. Please remove all packages from the document folder, that available as part of the TeX distribution, e.g. epsfig.sty, graphicx.sty, graphics.sty, trig.sty. Several of them are incompatible with current version of LaTeX or driver files, that are used from the distribution. Using up-to-date packages from the TeX distribution seem to work.
BTW: Package epsfig should not be used any longer. You should always use \includegraphics from package graphicx instead of the commands of epsfig.
Sorry, but I can no longer participate here as the administrator is trampling on my wishes on one of his other platforms.
Quick thought: is the document (and so the image) deep in your directory structure? I remember that there can be such an issue if the file paths are very long.
Ah, very good observation, Ijon is right. ./graphicx.sty etc. are packages in your document folder ./. Just be careful that you delete only files that are not your own content.