and installed it in ~/.lyx/layouts
In the same directory I have elsart.sty, elsart12.sty and elsart.cls
You need to run texhash to update your tex installation after downloading the sty and cls files. Also, you may want to put these files in a folder that tex searches (such as your local texmf tree; if you don't have one, it may be a good idea to create it). Or you can also run texhash from .lyx/layouts/ and it should be able to add it to the database. Take a look at Chapter 5 in Customization.lyx (Help -> Customization) - it deals with these issues.
I ran lyx->reconfigure.
In the output it says:
+checking for document class elsart [elsart,amssymb.sty]... no
Yeah, the above will hopefully take care of it..
nirmal