There are a couple of things in the 
dvipsrc that are important:

p +psfonts.cmz
p +psfonts.amz

makes dvips use CM and AMS Type1 fonts. This
gets read of the 'font-ugliness-in-acroread'
problem typical of TeX-originating pdfs.

K

tells dvips to strip headers from included
EPS files. This should make it easier to generate
n-up versions without mpage or other tools getting
confused by %%Page, %%Trailer, %%EOF or such
comments.