There's nothing magic about this. You just need to define a converter eps->pdf. The preferences dialog should make this trivially easy.
The converter is already defined.. it's epstopdf..
You could use Imagemagick's convert, Sebastian Rahtz's epstopdf or even gs itself. Your call ;-)
Well, there seem to be two problems:
1. My eps figure was in a different directory (i.e. not where the lyx file was) and it looks like epstopdf converts and keeps the pdf in that directory.. and pdflatex looks for the pdf file in the current directory .. is this true?
2. The main problem was that the pdf generated by epstopdf is messed up.. I get a message from epstopdf:
==> Warning: BoundingBox not found!
And b'cos of this the resulting pdf file of my presentation does not open... and I tried viewing the pdf of the image file separately using xpdf - it's just blank... so I guess epstopdf doesn't like the eps figure..
So now, for a solution - I converted the eps to pdf manually using convert, that cuts off a good 1 in on the right side of the figure.. so I converted it to jpg instead and everything seems to be fine.. I'm not sure why there's a problem with the eps figure - I generated it using Adobe Illustrator.. (and maybe that's it ;-)) ... is there a way I can specify that while running pdflatex, I want the eps images to be converted to jpg instead of pdf? Then I can define a converter for eps to jpg in lyx and all should be well I hope...
Thanks, nirmal