Peter,
Try experimenting with the fields paramater. Try Lower and Upper fields rather than None. Also, experiment with Compression settings. Try None or maybe 1:1.
Good luck!
Geoff
Steve,
I don’t know about the color stuff. I have had similar issues with unwanted junk in imported eps files. My solution is bring the EPS file into Illustrator and try to remove the points related to the unwanted line. Resave and try it in Red again.
Geoff