This problem has caused me a lot of grief when using IEEEtran.cls. I
would keep getting the Babel package error that the ENGLISH language
wasn't defined.
I decided to cut out Babel from the picture. I performed the following:
1. Follow Tools->Preferences->Language Settings->Language
2. Set Default language to English
3. Clear all text input fields
4. Uncheck all boxes
5. Press the Apply/Save button
6. Click Tools->Reconfigure
7. Restart Lyx
8. Test: load your document and press Ctrl-D (create DVI). should see no
error
I don't know if this will work for non-english users of LyX though.
Thanks
Manoj