I suppose that LyX runs latex instead of pdflatex and then latex2html takes the converted jpg-eps and converts it again to jpg.
Try to run _first_ pdflatex from inside LyX and then latex2html.
No difference I am afraid, l2h keeps on converting the figures to eps through dvips etc... I will send a mail to L2H.
it works for me. Did you tried to convert it from outside LyX?
Herbert
