[OS X TeX] latin modern fonts problem

[Doug Marmion]

Hello,

I'm running the latest carbon emacs and have installed MacTeX from the  
latest TeX Collection DVD, but I'm having problems running pdfLaTeX.  
When I compile my document it ends with the following error:

--
kpathsea: Running mktexpk --mfmode / --bdpi 600 --mag 1+0/600 --dpi  
600 lmmi10
mktexpk: don't know how to create bitmap font for lmmi10.
kpathsea: Appending font creation commands to missfont.log.
(see the transcript file for additional information)
!pdfTeX error: pdflatex (file lmmi10): Font lmmi10 at 600 not found
  ==> Fatal error occurred, no output PDF file produced!

LaTeX exited abnormally with code 70 at Thu Feb 26 13:03:26
--

It seems the problem could be the Latin Modern fonts, or at least some  
of them -- are they not compatible with PDFLaTeX? I can't work out  
what character  'lmmi10' is to create a minimal example.

This very frustrating error comes after some time spent debugging the  
path problem (turns out I have to launch emacs via the terminal to  
make it inherit the correct path to use TeXlive) and I'm running out  
of tether, so any help is greatly welcome.

thanks,
doug