Hi,
Instead of dvipdfm (I think because powerdot uses pstricks) do,
Ctrl-Shift-D - makes dvi
Ctrl-Shift-T - makes ps
and then make pdf - I guess Ctrl-V-P.
This might help. I have no access to lyx right now so the above part 
is from memory, nor I am a member of this list presently so sorry 
for breaking the threading, nor am I a guru of tex or lyx.


Shantanu
www.shantanukulkarni.org
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