I've done it!
You can mix 2 or more languages in one LyX document
on any version of LyX.
Here's what you do for Greek and English:
1. Layout->Document->Language greek
2. Layout->Document->Extra Options: english
In version 1.2 this is in a different part of the
document dialogue.
The above will result in \usepackage{babel} being put
by LyX into the preamble (not visible from LyX)
English will be the default langauge and whatever you
type in will display in English.
To change to Greek, you enter ERT
\begin{otherlanguage*}{greek}
Now whatever you type will appear in Greek.
To close the Greek environment, again in ERT
\end{otherlanguage*}
John O'Gorman