example below...
-- simon jackman
\documentclass[dvips,12pt,titlepage]{article}
...
\usepackage{psfrag}
...
\begin{figure}[htbp]
\begin{center}
\psfrag{t}[][]{$t$ (Turnout, \%)}
\psfrag{w}[][]{$\omega_t$ (non-response deflation factor) =
$t^{(\sim r)}/t^{(r)}$}
\psfrag{tr}[l][l]{$t^{(r)}$}
\psfrag{j96}[l][l]{\mbox{\small Japan 96}}
\psfrag{u96}[l][l]{\mbox{\small USA 96}}
\psfrag{cz96}[l][l]{\mbox{\small Switz. 96}}
\includegraphics[height=5.5in,angle=270]{turnout.ps}
\caption[]{\textsl{\textbf{Relationship between Turnout among Survey
Nonrespondents and Overall Turnout, 1996 AES.} The solid
line is a graphical representation of
equation~(\ref{eq:turnout}), conditional on imputing $\eta_t =
.744$, and hence $t^{(r)}$ = .687. The shaded area is a 90\%
confidence interval, capturing sampling variability in the
response rate and turnout. The solid horizontal lines
provide some international comparisons, with countries with
relatively low turnout.}}
\label{fig:turnout}
\end{center}
\end{figure}
==========================================================================
Simon Jackman, Asst Professor, ph: +1 (650) 723-4760
Dept of Political Science, fax: +1 (650) 723-1808
455 Serra Mall, Bldg 160, jackman@stanford.edu
Stanford University, http://tamarama.stanford.edu/simon
Stanford CA, 94305-2044, USA.