Houston, some more problems...
I tried going back to basic: I created a simple .tex file with one figure. The "Latex => DVI" looks like is working fine. The figure is seen ok when I open the DVI file using the YAP.
But...
I tried generating a PS file ("Latex => PS"). The file seems to be generated but when I open it with the GSview I get:
"
GSview 4.9 2007-11-18
Unknown in Comments section at line 8:
%%DocumentFonts: Times-Roman Times-Bold
Failed to load C:\Program Files\gs\gs8.63\bin\gsdll32.dll, error 126
המודול שצוין לא נמצא.
Failed to load C:\Program Files\Ghostgum\gsview\gsdll32.dll, error 126
המודול שצוין לא נמצא.
Failed to load gsdll32.dll, error 126
המודול שצוין לא נמצא.
Can't load Ghostscript DLL
"
... and file won't open.
Not sure if you can read the Hebrew fonts above

but it says something like:"The specified module could not be found".
One thing I did see in the compilation is this Warning:"Package pdfcolmk Warning: Nothing to fix, because 'pdftex.def' not loaded". I get the same thing when I use the "Latex => DVI" so I assume it's ok (or at least not the root cause of my problem...)
When I tried "Latex => PDF" I do get a pdf file, but the figure is missing again

I did not use a absolute path..
The "Latex => PS => PDF" doesn't create a pdf file.
In the text file, I use the IEEEtran documentclass.
Here is how I call the figure:
\begin{figure}[htbp]
\centerline{\includegraphics[width=9cm,height=8cm]{fig6_rbf.eps}}
\vspace{-0.5cm}
\caption{\small{Architecture.}}
\label{rbf}
\end{figure}
Well.. Sorry for the long post, but I tried to give all the details... It's almost 1:30 am now so it's bed time...
Please help.....................!
Thanks!
Gal