[Bug-AUCTeX] 11.82; zcat being invoked when including pictures

[Jose Figueroa-O'Farrill]

I have a LaTeX file with headers

\documentclass[leqno,a4paper,final,oneside,dvipdfm]{article}
\usepackage[latin1]{inputenc}
\usepackage[T1]{fontenc}
\usepackage{amsmath,amssymb,amstext,amsthm}
\usepackage[upright]{fourier}
\usepackage{pifont}
\usepackage{graphicx,subfigure}
\usepackage{epic,eepic}
\usepackage{fancybox,titlesec}
\usepackage{version,ifthen}
\usepackage{color}

and which includes several .eps figures using, e.g.,

\begin{figure}[h!]
  \centering
  \includegraphics[angle=270,width=0.7\textwidth]{Figs/apples.eps}
  \caption{Physical trajectories of equation~\eqref{eq:apple} in
    units where $g=1$}
  \label{fig:apple}
\end{figure}

If I compile the file in a shell using the command line, everything
works as expected: both latex and dvipdfm.  On the other hand, when I
compile it using AUCTeX in Aquamacs Emacs 0.9.8, I get the following
log:

Running `Dvipdfm' on `/Users/jmf/Documents/Teaching/UG/PoMP/Spring 
2006/Lectures/Notes' with ``dvipdfm Notes.dvi''

Notes.dvi -> Notes.pdf
[1][2][3][4][5][6(./Figs/apples.eps<PS>zcat: ./Figs/apples.eps.Z: No such file 
or directory
)][7][8][9][10(./Figs/hooke.eps<PS>zcat: ./Figs/hooke.eps.Z: No such file or 
directory
)][11][12][13][14][15][16][17][18(./Figs/collisionm1smaller.eps<PS>zcat: 
./Figs/collisionm1smaller.eps.Z: No such file or directory
)(./Figs/collisionequalmasses.eps<PS>zcat: ./Figs/collisionequalmasses.eps.Z: 
No such file or directory
)(./Figs/collisionm1larger.eps<PS>zcat: ./Figs/collisionm1larger.eps.Z: No such 
file or directory
)][19][20][21][22][23][24][25][26][27][28(./Figs/kepler.eps<PS>zcat: 
./Figs/kepler.eps.Z: No such file or directory
)(./Figs/coulomb.eps<PS>zcat: ./Figs/coulomb.eps.Z: No such file or directory
)][29][30][31][32][33][34][35][36][37][38][39][40]
486128 bytes written

Dvipdfm finished at Tue Jan  3 05:11:48

In other words, for some reason zcat is being invoked to uncompress
the pictures, but since they are not compressed they are not found and
hence not included, and I'm at a loss.

Thanks in advance,  José

Emacs  : GNU Emacs 22.0.50.1 (powerpc-apple-darwin7.9.0)
 of 2006-01-02 on rodrigues.inf.ed.ac.uk - Aquamacs Distribution 0.9.8
Package: 11.82

current state:
==============
(setq
 AUCTeX-date "2005-12-17"
 window-system 'mac
 LaTeX-version "2e"
 TeX-style-path '("style" "auto"
                  "/Applications/Aquamacs 
Emacs.app/Contents/Resources/site-lisp/edit-modes/auctex/style" 
"/Applications/Aquamacs 
Emacs.app/Contents/Resources/site-lisp/edit-modes/var/auctex")
 TeX-auto-save nil
 TeX-parse-self t
 TeX-master "/Users/jmf/Documents/Teaching/UG/PoMP/Spring 2006/Lectures/Notes"
 TeX-command-list '(("TeX" "%(PDF)%(tex) %S%(PDFout)\"%(mode)\\input %t\""
                     TeX-run-TeX nil
                     (plain-tex-mode texinfo-mode ams-tex-mode) :help
                     "Run plain TeX")
                    ("LaTeX" "%l \"%(mode)\\input{%t}\"" TeX-run-TeX nil
                     (latex-mode doctex-mode) :help "Run LaTeX")
                    ("Makeinfo" "makeinfo %t" TeX-run-compile nil
                     (texinfo-mode) :help "Run Makeinfo with Info output")
                    ("Makeinfo HTML" "makeinfo --html %t" TeX-run-compile nil
                     (texinfo-mode) :help "Run Makeinfo with HTML output")
                    ("AmSTeX" "%(PDF)amstex %S%(PDFout) \"%(mode)\\input %t\""
                     TeX-run-TeX nil (ams-tex-mode) :help "Run AMSTeX")
                    ("XeLaTeX" "xelatex \"%(mode)\\input{%t}\"" TeX-run-TeX
                     nil (latex-mode doctex-mode) :help "Run XeLaTeX")
                    ("ConTeXt" "texexec --once --texutil %(execopts)%t"
                     TeX-run-TeX nil (context-mode) :help "Run ConTeXt once")
                    ("ConTeXt Full" "texexec %(execopts)%t" TeX-run-TeX nil
                     (context-mode) :help "Run ConTeXt until completion")
                    ("ConTeXt Clean" "texutil --purgeall" TeX-run-interactive
                     nil (context-mode) :help "Clean temporary ConTeXt files")
                    ("BibTeX" "bibtex %s" TeX-run-BibTeX nil t :help
                     "Run BibTeX")
                    ("View" "%V" TeX-run-discard t t :help "Run Viewer")
                    ("Print" "%p" TeX-run-command t t :help "Print the file")
                    ("Queue" "%q" TeX-run-background nil t :help
                     "View the printer queue" :visible TeX-queue-command)
                    ("Dvipdfm" "dvipdfm %d" TeX-run-command t t :help
                     "Generate PDF using dvipdfm")
                    ("Ppower" "ppower4 -n %o" TeX-run-command t t :help
                     "Runs the PPower4 postprocessor")
                    ("File" "%(o?)dvips %d -o %f " TeX-run-command t t :help
                     "Generate PostScript file")
                    ("Index" "makeindex %s" TeX-run-command nil t :help
                     "Create index file")
                    ("Check" "lacheck %s" TeX-run-compile nil (latex-mode)
                     :help "Check LaTeX file for correctness")
                    ("Spell" "<ignored>" TeX-run-ispell-on-document nil t
                     :help "Spell-check the document")
                    ("Other" "" TeX-run-command t t :help
                     "Run an arbitrary command")
                    )
 )