Ares wrote:
> there's not much to play with.

The hyperref README says:

6 PACKAGE COMPATIBILITY
=======================

Currently only package loading orders are available:

[...]

algorithm
---------
  \usepackage{float}
  \usepackage{hyperref}
  \usepackage[chapter]{algorithm}

So float (which is modified by hyperref) and hyperref have to be loaded before 
algorithm. The problem is that LyX loads algorithm before the user preamble. 
So your only chance is probably to load the algorithm package yourself (and 
use ERT in the document.

> I attach a sample file in the following. as you can see the
> label/references mechanism works fine until the alg stuff.

Please attach it as a real attachment next time. I won't cut and paste from 
E-Mail to a text editor to get a LyX file.

Jürgen

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