> When using mathpazo to select the Palatino font (which I was very happy to 
see you support), it
> should almost certainly use the [sc] option to use better small caps and 
better kerning.

You can add this by adding the option "sc" to the document class options in the document settings dialog.

> No-one's using a new version of LyX with an old version of LaTeX, right?

That's not true. There are still people using teTeX (even teTeX 2) and latest 
LyX.

> In any case, the [sc] option has been around for a long time now.

Please add an enhancement request at bugzilla.lyx.org.

regards Uwe

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