[l2h] latex2html losing

Vadim Yu. Radionov Vadim Yu. Radionov" <vadim@mccme.ru
Sun, 05 Nov 2000 16:33:39 MSK

I have the same problem.
It seem that latex2html writes to image.tex the lines with
but not 
so later LaTeX in non-stop mode skips unknown command and leaves only
the text "fig.ps", instead of the picture.  And obvious 
$DO_INCLUDE = 'graphics';
in .latex2html-init does not help, unlike documentation states.

So images generation is correct, but where is the bug?