Use pdfwrite please

When you are creating graphics using psfrag, you cannot use PDFLatex directly, instead you can just compile the document into DVI and convert it into *.ps file (use the DVIPS).

Then open the *.ps file using GsView or you can use the ghostscript command line to CONVERT the *.ps file into *.pdf. (Convert it! not to print it!)

Take care

Use inkscape and psfrag for including vector graphics in Latex

1. Draw your vector graphics on inkscape . Put text variables (using text tool, for example var_1, var_2, anything!) Save it as *.eps file (don't forget to UN-CHECK all the options of the EPS output).

2. A latex file example

\usepackage{psfrag}
\usepackage{graphicx}
\documentclass{article}

\begin{document}

\begin{figure}[h]
\begin{center}
\psfrag{var_1}{$var_1$}
\psfrag{var_2}{$var_2$}
\includegraphics[width=8cm]{images\your_vector_graphics.eps}
\caption{Test\label{fig:test}}
\end{center}
\end{figure}

\end{document}

3. Compile it!

Xe-{TeX,LaTeX}

Recently, I found Xe-{TeX,LaTeX} to be very cool way of adopting "local fonts" to experience neat layout on .pdf files. Really cool!

An example of xelatex document:

\documentclass{article}
\usepackage{fontspec}
\usepackage{xunicode}
\usepackage{xltxtra}
\setmainfont[Mapping=tex-text]{Batang}
\begin{document}
\section{Batang}
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Praesent non mauris eget
\section{한국어}
인구는 약 142만명이다. 광주광역시는 인구가 약 500만명인 호남 지방의 유일한 광역시이며, 호남 지방의
\end{document}

compile it with xelatex (available in MikTex 2.7 package)