EPS image displayed rotated by 90 degrees and cropped in Lyx and also in pdf output

[Peter Sutovsky]

I am using Lyx 1.5.3 (alternative installer) and MIKTEX 2.7. EPS image is
displayed rotated by 90 degrees and cropped in Lyx and also in pdf output. I
can rotate it back through graphics options in Lyx, but it remains cropped.