I have found the following to work.
1. put 2 lines into ~/.dvipsrc:
p+ psfonts.cmx
p+ psfonts.amx
2. In the preamble (Option: Layout->Edit Preamble) put:
\usepackage{ae,aecompl}
3. File -> Export -> PDF
You can test by using View -> PDF. But you need acroread installed.
Acrobat Reader (acroread in Unix) is what M$ people use.
Xpdf and gv will look OK no matter what.
I got all this stuff from the LyX documentation (I forget which book,
maybe Extended)
As I understand, the above configuration forces LyX (and/or LaTeX) to
use postscript versions of Knuth's Computer Modern fonts. The Acrobat
reader cannot render bitmap fonts properly on screen.
The ae and aecompl have something to do with encoding (which I don't
understand) but I
found it was necessary to get acceptable rendering of the text.
John O'Gorman