Text cannot be properly justified in the 'item' environment, if \use_geometry is set 'true'. Both the lyx interface and the pdf output appear to be affected by that switch. I do not remember what the use of the \use_geometry option and how it can be set off from the lyx interface. I I have just found that, as \use_geometry is set 'false' by editing the lyx character text file, word wrapping is ok. Is that a bug? Should \use_geometry be set to 'false' by default?
Thank you -- Pol