Ever since I've updated to MiKTeX 2.8, xypic does not seem to work, to the point that, if I try build an output PDF with a latex file in which I use xymatrix, for example, I get a fatal error. I've been trying to fix this for several hours to no avail. I've gathered that this is a somewhat well-known bug having to do with the .enc files associated to xypic simply not being included in the installation. However, I've tried installing the newest version of xypic which includes these files, and I still get the error:
pdflatex (file xyd.enc): cannot open encoding file for reading ==> Fatal error occurred, no output PDF file produced!
However, xyd.enc exists, I know this for sure. Perhaps I put it on the wrong directory- the installation instructions for xypic 3.8.2 are less than enlightening.
Has anyone else encountered this error and know a fix? This is a serious hindrance to me as it is effectively stopping me from TeX'ing up my results (I make enough typos in general that I need to regularly build an output to check for errors).
I apologize that this question is not mathematical, but, I think it is a question that will be of use to many users of this site as surely I am not the only one experiencing this problem, and besides, I've made it clear in the title that this is a non-mathematical question and I've made it community wiki.
P.S. I get a similar error when trying to build output to a DVI or PS.