EPS file embedding issue with MS Publisher

As you may or may not know, I’m currently working on two newsletters for the hospital I work at. Things have gone relatively smoothly until I attempted to embed an EPS file into Publisher 2003.

I originally received the EPS file from our ad agency. After altering it a little in Adobe Illustrator CS3, I re-saved the file in EPS format. When I attempted to import it into Publisher, however, all that came up was a blank, completely transparent object with the same dimensions as the file. I tried adjusting the EPS save settings, but received the same result. Finally, I attempted to re-save the file using Corel Paint Shop Pro XI, and the image finally appeared, but all transparency was replaced with whitespace.

Does anyone have any idea what is causing this and what may fix it? Thanks for your help.

Edit: One more thing: When Paint Shop Pro opens the EPS file, it opens the text as a raster instead of a vector. Anyone know why?

Did you try saving it as a CS EPS instead of a CS3? I’d try saving it as the earliest kind of EPS you can without losing the transparency. If worst comes to worst, you might have to take it into Photoshop and rasterize it before importing it into Publisher.

Just tried saving it as a CS EPS. No dice. Unfortunately, due to budgetary restrictions, I am unable to purchase Photoshop.

I’ve never had much luck working with EPS in Microsoft Office products. I will note that what-you-see on the screen is often far worse than what-you-get when you print the result (particularly if you print to a printer that uses Postscript as its internal rendering language).
An option worth considering is getting the free programs ghostscript and gsview. Use them to load the EPS file and then convert to a more Office-friendly graphics format. Sadly, this will require you to rasterize the image, so be sure you know the final size you want, as any resizing afterwards may lose detail.