Re: Cannot see graphics when pdf is selected

One way to avoid "manual" creation of the pdf figures from eps is to use 
dvipdfm to process the dvi file and its eps figures.

EPS files are converted transparently by dvipdfm[x] using MiKTeX Ghostscript:

% The following line works with MiKTeX Ghostscript
D "mgs.exe -q -sPAPERSIZE=a0 -sDEVICE=pdfwrite -dCompatibilityLevel=1.2 
-dUseFlateCompression=true -dNOPAUSE -sOutputFile=\"%o\" \"%i\" -c quit"

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