I recently updated to lyx-1.5.5 from lyx-1.5.3 at the same time time that I updated my Fedora from core 5 to fc8.
I am including xfig images as graphics. Before, the converter would automatically take care of the conversion to EPS, so that psfrag worked on the resulting image (which I use to put equations in the figures). Now, however, there are two problems. First, the automatic conversion of the xfig graphic is rotated by 90 degrees from its usual orientation. Second, the conversion is not recognized by psfrag and so the text strings are not replaced properly. If I export directly to EPS in xfig and include that graphic then everything works correctly again. I would prefer not to have to do that for all of the images, though. Any ideas what is going wrong here? BTW, I think LyX is a wonderful program.