Indented Paragraphs vs. \raggedright

[Jonathan Ryshpan]

When I put "\raggedright" in the preamble, and set
        Document->Settings->Text Layout->Separate Paragraphs
        to "Indentation", 
paragraphs are not indented.  Using "Vertical Space" instead of
"Indentation" works OK.

Why is this?  How can I get paragraphs to indent, using LyX, when
ragged right is desired?

Thanks - jon