texlive and includegraphics{}

[Richard Lyons <richard@the-place.net>]

I've just found texlive on a new etch install cannot find graphics called
with includegraphics{}.  These are files that ran with Latex, and have 
'\usepackage{graphicx}'.  The only error message is 
dvips: Could not find figure file /home/richard/foo/bar.eps; continuing
The graphics files are still there and permissions are ok.

Is this a problem with the debian package, or an inherent characteristic
of tex-live.  I.e. do I have to revert to latex or look for some
additional package? 

TIA

richard