Trouble with epstopdf: File 'foo-eps-converted-to.pdf' not found

The important line of the .log file is:

runsystem(epstopdf --outfile=foo-eps-converted-to.pdf foo.eps)...disabled.

The conversion do not work, because the shell escape feature is not enabled. Probably you are using an older TeX distribution. TeX Live and MiKTeX have a the restricted shell escape feature enabled by default.

On older systems (not too old, of course) the following option should work:

pdflatex --shell-escape

or (MiKTeX)

pdflatex --enable-write18

I had a similar problem on a Mac and it gave me a real headache. The following helped me

In my log file I had:

runsystem(epstopdf --outfile=foo-eps-converted-to.pdf foo.eps)...executed

I was however told that:

dyld: Library not loaded: /usr/X11/lib/libXt.6.dylib
Referenced from: /usr/local/bin/gs
Reason: image not found

and so subsequently:

! Package pdftex.def Error: File `foo-eps-converted-to.pdf' not found.

Turned out to be a problem with upgrading to Yosemite where X11 is moved from usr/X11 to opt/X11. I found another post about this which recommended manually adding a link:

sudo ln -s /opt/X11 /usr/X11

For me this solved the problem.