Graphics, Figures & Tables ⇒ includegraphics and pict2e

[paul]

If I \includegraphics{foo.jpg} in my file, XeLaTeX processes it just fine; but if I \usepackage{pict2e}, suddenly TeX starts complaining "foo.bb not found". Obviously I can just make the bounding box file, but what's causing this? I can't see anything in pict2e or the driver file (dvipdfm) that messes with includegraphics...