thanks Herbert, for the advice re wrapping text around figures
so what I did in the lyx document is
in preamble:
\usepackage{floatflt}
\usepackage{graphicx}
text text text see figure (cross reference to the MARKER)
\begin{floatingfigure}{6cm} %6cm: width of figure
\centering
here comes the figure (click on figure icon and choose figure)
\caption[short legend]{MARKER long legend}
\end{floatingfigure}
text text text
and, surprice, it works. However placing the figure in the text is somewhat
tricky. One should choose the begin of the paragraph which floats around the
figure and other normal figures should not be too close to the text-floated
figure
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