How can I easily insert pictures into LaTeX?

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lo2
I am using LaTeX quite a lot and I think that it is awesome stuff. However there is one little problem and that is inserting pictures into LaTeX I consider it pretty difficult to do. But a program like LaTeX which so many people use most have got an 'easy' way to insert pictures.
 
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What I do:

Produce figures as eps.

Then do something like:

Code:
\begin{figure}[t]

\begin{picture}(120,120)(0,0)

  \put(0,0){\resizebox{5cm}{!}{\includegraphics{pic2.eps}}}
  \put(60,0){\resizebox{5cm}{!}{\includegraphics{pic1.eps}}}

\end{picture}

\end{figure}