Hello, I think I found one more graphic bug in LyX 1.6.0rc2. If you insert a graphic and the graphic file extension contains upper case (like graphic.PNG) LyX will gave me an error. If the graphic file extension contains lower case (graphic.png) there is no problem creating an output.
Maybe this bug is related to this one: http://bugzilla.lyx.org/show_bug.cgi?id=5252 Joachim