> So what happens if we disable embedding? What happens with these files
> that are not linked with an external source?

When you disable embedding, these embedded files will be extracted to
their original locations. All embedded files know their original
location even if it is in EMBEDDED mode.


> >   If the external copy is not found anymore we use the internal copy, that 
> > is
> > why it is called auto(matic).
>
> This seems a bit complicated to me...

Yes. This is complicated, but can be less a problem if we inform users
the status of the embedded file. For example,

1. when a .lyx file is opened, and if external files are used, inform
the user about this.

2. in the embedding panel, make it clear which file is used, embedded
or external.

Bo

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