Hello Again John
If you want quark to create the clipping path,
I would suggest using a TIFF instead of an eps.
If you are forced to use an eps then you will have to create the clip in photoshop ;-(.
Since I usually save the art in a TIFF format, I rarely do clips in Photoshop any more. I will dele the background I dont want, flatten the image then bring it into Quark and let it handle the clip using the non-white option.
It usually works fine, but occasinally it will create to many points or clip areas I dont want clipped, and then you end up editing the clip anyway.
If its to much work in Quark then I will go back to Photoshop and embeed the path.
Also I could be wrong about this, but I dont think Quark will do COMPOUND paths. So for example, if you want to clip the inside of a capitol B (art work), you will have to do this in photoshop. This is kinda strange tho because if you create a compund clip in Photoshop, you will be able to edit it in Quark. So I will assume that there is a way to create compund paths from Quark.
Quark should allow you to edit the embedded clip in the eps.
If Quark creates it, then it is basically the box itself that is the clipping path. So you end up reshaping the box.
I went back and made sure, If you embed the clip in the eps from photoshop, then Get file in quark, then choose embedded path from the Modify->Clipping, then you "should" be able to Item->Edit-> Clipping path.
Hope that helps