I apologize if this is a well-known problem, couldn't find
it in the data base.

Problem is the ghostscript configuration. GS, as delivered
with RH 5.2, does not include the "pnmraw" device, which
is required by ImageMagick to convert PS/EPS to any other
image format. This makes Imagemagick unusable for one of
its IMO most important tasks, converting EPS (used e.g. with
LaTeX) to Web-suited image formats as PNG, GIF, or JPG.
Reconfiguring the GS package to include the "pnmraw" device
would suffice to solve the problem. Of course I can do that
myself, but I think this should be fixed in a
well-configured system.