Hi everyone, yes, I did see this thread,http://www.mail-archive.com/lyx-users@lists.lyx.org/msg84463.html, to no avail originally, however it jogged me into working out a solution now that I've read it again!
Here is the complete instructions to solving this problem, for anyone who needs them: 1. change into directory /usr/local/texlive/2010/bin/universal-darwin 2. type sudo ./texhash (and enter password) 3. open lyx, go to LyX>Preferences>Paths> PATH Prefix. Remove whatever else is there and replace with /usr/local/texlive/2010/bin/universal-darwin. Save. 4. Go to LyX >Reconfigure. 5. Close LyX and open it again. Kerensa.