here (http://www.perce.de/LyX/VTeX.pdf) you can see, what is possible with the free VTeX for Linux. It supports in an easy way the PostScript related packages and produces pdf by default. The above demo uses the parshape command and inserts the LyX and smiley with pstricks, which is not possible with pdflatex.
The link for VTeX: http://www.micropress-inc.com/linux/ The good news is that VTeX/Lnx is free. Herbert -- http://www.educat.hu-berlin.de/~voss/lyx/
