I'm trying to import figures from Matlab into a LaTeX document using PSFrag. For some of the figures I'd like to be able to add little images in particular places. I thought I'd be able to just add dummy tags in Matlab and replace them, as in
\psfrag{s14}[lt][lt]{%
\color[rgb]{0,0,0}
\setlength{\tabcolsep}{0pt}
\begin{tabular}{l}
\includegraphics[width = 0.8cm]{Simple2}
\end{tabular}}%
but for some reason it replaces the tag with the base figure (as in, the big plot I'm trying to add little images to) instead of the little image.
Any solutions greatly appreciated.

\usebox\myboxthat way you are separating the calls to\includegraphics– David Carlisle Jun 22 '12 at 23:08\includegraphics{}). Also I would recommend porting your data topgfplotsand draw them in LaTeX directly to avoid such problems. – percusse Jun 23 '12 at 01:05