> > So, it seems to me that LyX tried to execute 'BUGS.tex' instead of > 'latex BUGS.tex' or whatever it was supposed to do. Any ideas?
Seems like LyX doesn't know where the latex executable is or else this has never been set. If you look at Preferences->Converters->Converters and click on Latex->DVI, it should show you the program it's using in the "Converter" field. Make sure that it says something like "latex $$i"... Hope this helps.. nirmal