pdfLaTeX and psfrag Working!

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This works 100% with MiKTeX 2.9, pdfLaTeX, and psfrag.

I tried this and all I can say is that it works. Not even one decent reference online has this put the way I will show in this post.

Prerequisites:
1- Enabling the -shell-escape switch in MiKTeX for pdfLaTeX.
2- Having .eps files (not .png and definitely not .jpg).
3- You will need to have graphicx, auto-pst-pdf, and psfrag enabled. Disable epstopdf if you have that.

How to:
1- Include the following code in your preamble:
\usepackage{graphicx}
\usepackage[
latex={-interaction=nonstopmode},
crop=off,runs=2
]{auto-pst-pdf} %use [off] to stop compilation
\usepackage{psfrag}
2- For the pictures you intend to psfrag, follow this code:
\begin{figure}[h!tbp]
\begin{center}
\scriptsize{
\psfrag{time}{Time}
\psfrag{signal}{Signal}
\psfrag{0}{$0$}
\psfrag{0.5}{$0.5$}
\psfrag{-0.5}{$-0.5$}

\psfrag{-1}{$-1$}
\psfrag{1}{$1$}


\psfragfig[width=4.0in,keepaspectratio]{untitled2.eps}
}
\end{center}
\end{figure}

Thanks to ctan.org for getting me to the closest possible point in getting this right.