TeXfig is a small tool which uses Latex for setting the text in xfig documents. This is useful if you want to produces figures with complicated text elements like formulas.

Get it from http://sourceforge.net/projects/texfig
Sorry no cvs jet.

Extract the tarball and put the texfig script somewhere in your $PATH . It requires Latex, gv, Xfig and fig2dev to be installed.
 fig2dev is a part of the transfig package in many distributions.

Is simple. Type texfig ourfile.fig . As you save your file (use the shortcut Alt-s ) in xfig, latex will be fired up and preview the produced  ourfile.eps in gv.  All time when you update your xfig file - latex is used for the typesetting and you can see your changes on fly in gv  (enable the watch file option ). Have a look in the example directory. When a error in latex code occurs simply press q in the xterm. Closing the gv or xfig window will terminate texfig. In addition the script eps2png in provided, form producing png bitmaps with transparent background.

Have fun