Hello.
When I write a small lyx file (ams, article, unnumbered) (it's attached) 
with lyx 1.1.6fix4, I have a mathdisplay as an example environment. Then 
the text "example" is not left aligned..should it not be that? It looks ok 
in ghostview though. I attach a screenshot so you know what I mean.

#LyX 1.1 created this file. For more info see http://www.lyx.org/
\lyxformat 218
\textclass amsart-plain
\language swedish
\inputencoding latin1
\fontscheme default
\graphics default
\paperfontsize default
\spacing single 
\papersize a5paper
\paperpackage a4
\use_geometry 0
\use_amsmath 0
\paperorientation portrait
\secnumdepth 3
\tocdepth 3
\paragraph_separation indent
\defskip medskip
\quotes_language english
\quotes_times 2
\papercolumns 1
\papersides 2
\paperpagestyle default

\layout Section*

Ekvationer, 2002-10-22
\layout Definition*

En ekvation �r ett uttryck med ett likhetstecken.
\layout Example*


\begin_inset Formula \[
\underbrace{x^{2}}_{V.L.}=\underbrace{2x}_{H.L.}\]

\end_inset 


\the_end

<<attachment: lyxerr.png>>

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