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What is LyX?
LyX is a WYSIWYM (WhatYouSeeIsWhatYouMean) DocumentProcessor. Its homepage is at http://www.lyx.org/ and you can probably get a much better description of what it is there.
The basic idea of LyX is that you do not need to handle style, or actually, you use a set of predefined styles and concentrate on your document content, This makes sure that your resulting document will be typographically correct and good looking visually. You can of course apply various style changes and order LyX to do things differently, but you only need to do it once for each option and the same style will be used throughout the document, making sure that your document is consistent in its look (we are still working on the AI to make sure the document is consistent in the content too :-) ).
LyX uses LaTeX as its backend typesetting mechanism. LaTeX is a very powerful system that gives great results. By using LaTeX, LyX can produce Postscript and PDF output. In addition, by using latex2html, you can get HTML output.
LyX can also export to DocBook and LinuxDoc formats.
Just give LyX a try and you'll be hooked, many tried it and prefer it over anything else. It might need some time to get used to (Read: a somewhat steep learning curve), but it is worth the time and effort.