I'm using the MiKTeX distribution with TeXStudio IDE. Here is a MWE:
\documentclass[reprint,aps,prl]{revtex4-1}
\usepackage{graphicx}
\begin{document}
\title{Nice Title}
\maketitle
Hello world.
\begin{figure}
\includegraphics{myEPSfile}
\end{figure}
\end{document}
If I use LaTeX, then I get the TeX capacity exceeded
error. If I use LuaLaTeX, then I get a file not found
error. If I include the eps extension then I get unknown graphics extension
error. You can download my eps file from here, if interested.
Note: Using pdfLaTeX with epstopdf
package works, but the publisher do not want that route.
Best Answer
It turns out the problem really is in the eps files. I was using Igor Pro, a data analysis software, to produce the files. Its manual states the following:
After removing that option everything seems fine now, although I have to use XeLaTeX and not LaTeX itself.