When you successfully run latex at a command prompt, you are doing so with the
limited rights account, correct?

Am I correct in assuming that if you log in with the local admin account, LyX
works correctly for you?

One thing you might try is to delete the local LyX directory for the limited
rights user, then restart LyX (as the limited rights user) and let it try to
rebuild that directory.  I think the directory is usually stored at C:\Documents
and Settings\<limited rights user id>\Application Data\lyx.  (Unfortunately I
don't have access to a Win XP machine anymore.)  Just delete the entire
directory.  I you have modified any bind or layout files, you might want to back
those up first, but if this is an out-of-the-box LyX installation there is
nothing there you need to worry about.

Paul


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