Ran into an unusual problem which i finally resolved. I thought it might be of interest to others. The problem occurs when you include/input files that have spaces in them and then you try to process the generated tex file seperately. When Lyx generates the tex for the master file it generates somethihg like:

\include{\string"Filename with spaces"\string}

But when you process this with latex/pdflatex it generates an aux file containing

\@input{"Filename.aux}

which of course causes no end of confusion to both latex and bibtex. Removing the spaces fixes the problem

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