LyX and figure/table floats

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I am using LyX 1.2.0. It works great with my old lyx 1.1.x documents...
However, I am unable to insert a figure/table float WITH A CAPTION.
Captions appear from floats created with previous lyx versions!? I
wasn't sure if this was a developer problem or a documentation problem.
Why doesn't the "Figure #" or "Table #" appear in new floats? Thank you