I use lyx 1.4.3 with linux (Fedora Core 5), and in the past have found it
useful to define the environment variable

BIBINPUTS = /home/jim/my_bibfiles

My impression was that this allowed bibtex by default to search for .bib
files in this particular directory, so that when it came to adding .bib
files to my document I didn't have to go hunting around directories to
include them.  These .bib files conveniently showed up as clickable items.

However, I recently had the following problem.  I put a few .bib files in a
different directory and wished to include them for bibtex in some document.
Since they weren't in the directory specified by BIBINPUTS, I had to click
through a directory tree and specify their absolute path when I included
them.  Everything worked fine within the document itself.  I was able to add
citations and choose from a list that corresponded to the .bib files I had
included.  The citations appeared to show up correctly in the lyx window
itself.  However, when it came to viewing the document (DVI or PDF) the
references were not properly included (just a bunch of ??).  Lyx complained
that it couldn't find the .bib files I specified, although lyx didn't
complain whatsoever when I added these .bib files after my insertion of the
Bibtek Generated Bibliography (from Insert --> List/TOC --> Bibtex
Bibliography).

To see what the problem was, I eliminated the BIBINPUTS environment variable
and rebooted.  After this, lyx was able to find properly the .bib files I
had previously tried to include with no success.  Thus, it appears that
unless you double-click one of the .bib files specified in the directory of
BIBINPUTS, then lyx (or bibtex) fails to "find" the corresponding .bib
files.  The solution seems to be to remove the BIBINPUTS environment
variable altogether.

Why is this?  Shouldn't I be able to define a default BIBINPUTS directory,
but still add whatever .bib files I wish from other directories?

Thanks,
Jim

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