By default, clipping is disabled for included EPSF images. This is because clipping to the bounding box dimensions often cuts off a small portion of the figure, due to slightly inaccurate bounding box arguments. The problem might be subtle; lines around the boundary of the image might be half their intended width, or the tops or bottoms of some text annotations might be sliced off. If you want to turn clipping on, just use the command
\epsfclipon
and to turn clipping back off, use
\epsfclipoff
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