The xfig ext. inset in 1.2.0 works if there's other graphichs in the document, not when it is alone.
This because "other" graphics
insert a /usepackage{graphicx} that
doesn't appear when using the inset only.
Editing .lyx/external_templates
and changing the xfig requirement from
graphics to graphicx seems to fix this.
Helge Hafting
