How do I deal with PNG garphics in LyX?

I am writing a book and need to work with PNG graphics. I can insert PNGs, but 
when trying to view the result (CTRL+d) I get:

        "Cannot convert image (not existing file?)
        No information for converting from png to esp".

and then three red error-boxes. 

What to do?

Janus

-- 
Roskilde University, Denmark.
Department of Technology and Social Science.
International Development Studies
ESST - Society, Science and Technology in Europe.

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