There is a graphics package for LaTeX2e which I have not
investigated yet, so I can't comment much on it. People who have
\epsf in their older documents should probably
investigate the epsfig package, which is documented in the
LaTeX Companion, and is very similar to the older package. I
have used it in a number of documents with good results.
Recent investigations have revealed that epsfig is
only intended as a backwards compatibility package, and any new
documents should use the graphics package, and the
\includegraphics command, as that is expected to be better
supported in the long term. The best documentation for this package
seems to be found in the LaTeX User's Guide.