viol8ion - I have now tried saving my PSD file with clipping path as a TIF and placing in PM and it worked just fine. Thank you.
The reason I asked the question is that the other two graphic designers at my new job save EVERYTHING (from Photoshop or Illustrator) as EPS, because they use Illustrator for page layout. Believe it or not. And this includes using ILL for layout of a product catalogue of 100s of pages. I couldn't believe it when I first found out. When i asked why, I was told that (a) that's the way it had always been done and (b) they could only do duplex printing on the in-house colour laser using ILL.
I am hoping it is possible to do both imposition and duplex print from Pagemaker 7.0 (which we have at work) as it is the program I will be doing all my page layout in.