For what it's worth, here's a letterhead file that did work, though i 
had to do a lot in the preamble:

#This file was created by <hawk> Thu Jan  7 18:58:52 1999
#LyX 1.0 (C) 1995-1998 Matthias Ettrich and the LyX Team
\lyxformat 2.15
\textclass letter
\begin_preamble
\usepackage{graphics}
\usepackage{ifthen}
\newfont {\lawoffice}{parkave at  14.0pt}
\newfont {\richard}{parkave at  24.0pt}
\newfont {\adress}{parkave at  12pt}
\newfont {\web}{phvr at 9.0pt}
\newfont {\email}{pcrr at  10.0pt }
\renewcommand{\headrulewidth}{0pt}
\newsavebox{\addressbox}
\savebox{\addressbox}{\parbox{2.5in}{
\begin{center}
\adress
180-D Heady Hall\\
Ames, IA  50010\\
515 / 294-8931
\end{center}
}}
\newsavebox{\admitbox}
\savebox{\admitbox}{\parbox{1.8in}{
\begin{center}
\adress
Admitted in California \\and Nevada
\\~
\end{center}
}}
\newsavebox{\bignamebox}
\savebox {\bignamebox} { \parbox{2.5in}{
     \begin{center}
    \lawoffice Law Offices of  \\ \richard Richard E. Hawkins
   \end{center} }
   \hrulefill }
\lhead{
   \adress
%   \vspace{.5in}
  \underline{\usebox{\bignamebox}} \\
%  \vspace{-.75in}
%   \hrulefill \\
   \vspace{.5in}
 \ifthenelse {\value{page}=1}
       {\parbox[t]{3in}{ \sloppy  
 180-D Heady Hall
         \\Ames, IA  50010
          \\515 / 294-8931}
           \hfill 
         \parbox [t] {1.75 in}{
\usebox{\admitbox}
        }
       }
    {}
}
\chead{}
\rhead{}
\lfoot{
 \ifthenelse {\value{page}=1}
    {~\\~\\
     \email [EMAIL PROTECTED]}
    {}
}
\cfoot{
 \ifthenelse {\value{page}=1}
    {}
    {\thepage}
   }
\rfoot{
 \ifthenelse {\value{page}=1}
    {~\\~\\
     \web http://eyry.econ.iastate.edu/hawk}
    {}
}
%override header cancelation
\def\ps@firstpage{
   \let\@oddhead\@{
  \adress
   \vspace{.01in}
  \usebox{\bignamebox} \\
  \vspace{.01in}
   \hrulefill \\
   \vspace{-.05in}
 \ifthenelse {\value{page}=1}
       {\parbox[t]{2in}{ \sloppy  
\usebox{\addressbox}
 }
           \hfill 
         \parbox [t] {1.75 in}{
    \usebox{\admitbox}
        }
\vspace{-1in}       }
    {}
}
}
\end_preamble
\language default
\inputencoding default
\fontscheme default
\graphics default
\paperfontsize default
\spacing single 
\papersize Default
\paperpackage a4
\use_geometry 1
\use_amsmath 0
\paperorientation portrait
\leftmargin 1in
\topmargin 1in
\rightmargin 1in
\bottommargin 0.5in
\headsep 1in
\secnumdepth 3
\tocdepth 3
\paragraph_separation skip
\defskip medskip
\quotes_language english
\quotes_times 2
\papercolumns 1
\papersides 1
\paperpagestyle fancy

\layout Send To Address


\latex latex 

\backslash 
vspace{-1in}
\layout Send To Address

Department of Economics
\newline 
 attn: Chair, Search Committee
\newline 
St.
 Cloud State University
\newline 
720 Fourth Avenue South
\newline 
St.
 Cloud, MN 56301-4498
\layout Signature

Richard E.
 Hawkins, Esq.
\layout Opening

Dear Sirs and Madams,
\layout Standard

I am interested in your appointment in Law and Economics , which is listed
 in J.O.E.
 
\layout Standard

blah, blah, blah
\layout Standard

\layout Closing

Sincerely,
\layout Description

REH:mi
\layout encl

resume, articles, teaching evaluations
\the_end

-- 

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