The program kpsewhich locates files for your latex system. Normally,
this should not take much time because most tex installations have a
database saying where all of its files are so it does not require an
actual disk search.
Since you have long runs in typeset2, but not in the original typeset,
the natural guess is that preview.sty never made it into the database.
It is a latex style file used in typeset2. The installation process for
dvipng should have updated the tex file database after installing
preview.sty, but maybe something went wrong.
So, the first thing to do is find the program texhash on your system
("which texhash" or "locate texhash" or "find / -name texhash"). Then,
run that program as super user.
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