EPS figures created by xfig seem to convert fine, but the ones exported from Matlab pop up this GS> prompt... (you can bring lyx back by typing 'quit')
I've managed to narrow the eps problem on 6.0.8-Q16 down a bit - conversion works fine on the command line without any switches, but fails in the same way with the "-depth 8" switch that's in convertDefault.sh:
convert -depth 8 eps:test.eps ppm:out.ppm
AFPL Ghostscript 8.14 (2004-02-20) Copyright (C) 2004 artofcode LLC, Benicia, CA. All rights reserved. This software comes with NO WARRANTY: see the file PUBLIC for details. GS>quit AFPL Ghostscript 8.14 (2004-02-20) Copyright (C) 2004 artofcode LLC, Benicia, CA. All rights reserved. This software comes with NO WARRANTY: see the file PUBLIC for details. GS>quit convert.exe: no decode delegate for this image format `test.eps'. convert.exe: missing an image filename `ppm:out.ppm'.
I hope IM people sort this out eventually, in the meantime I'm going back to 6.0.0 or 5.5.7
M