Graphics, Figures & Tables ⇒ includegraphics for png/pdf images

[Johannes_B]

You most likely got your code (or parts of it) somewhere off the internet. Problem is, the internet is littered with obsolet and/or wrong stuff.

There is no need to give the driver as a gloabl or local option. The packages decide themselves what to do.

Now, take your code, search for dvips and delete it.
If you do not find it because you are using a bad template (btw, all templates are bad), get yourself an introduction, invest some time in reading and trash the template.
But on the other hand, if everybody would do that, we helpers had nothing to do anymore, since every user could help himself.

[asafw]

Thank you, Johannes! removing "dvips" from "\usepackage[dvips]{graphicx}" in my template did the job indeed..
You guys are always so helpful.. thank you!
Asaf