I can't compile it, it says simpsons.sty not found
Have you installed the "simpsons" package to your LaTeX distribution? If not, do this via MiKTeX's package manager.
if I highlight this I then get. \usepackage {fancyhdr}^^M *** (cannot \read from terminal in nonstop modes)
This looks like a different problem. Can you send me a LyX file to be able to have a look?
regards Uwe