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LaTeX within xfig | 
% xfig -specialtext -latexfonts -startlatexFont default
I use bash, so I have included these options in my .bashrc, where
I also set the size of the xfig window and start up xfig with a 
metric grid.  My .bashrc has the entry:
alias xfig='xfig -geometry 950x700+50+20 -metric -startgridmode 3 -specialtext -latexfonts -startlatexFont default'
Edit
tab; you do not need to resize with LaTeX commands.
filename.pstex and 
filename.pstex_t
xfigTOeps:
% xfigTOeps filename
This uses filename.pstex and filename.pstex_t 
to produce the figure filename.eps.
(The script includes these files in an otherwise blank LaTeX page, 
compiles this page, and then extracts the eps figure; see below for
details.)
xfigTOeps is written assuming that 
        xfig_to_eps.tex is in ~/local; 
        modify as necessary.xfigTOeps is written assuming that this is 
        ~/tmp; modify as necessary.)
% xfig -specialtext -latexfonts -startlatexFont default
I use bash, so I have included these options in my .bashrc, where
I also set the size of the xfig window and start up xfig with a
metric grid.  My .bashrc has the entry:
alias xfig='xfig -geometry 950x700+50+20 -metric -startgridmode 3 -specialtext -latexfonts -startlatexFont default'
filename.pstex and 
filename.pstex_t.xfig2pdf script below converts EPS files to PDF in the 
final step.)
% xfig2eps filename
or
% xfig2pdf filename