dvips Problem

[Will Oram]

This is the first time I've run lilypond 1.8, as well as lilypond at 
all on this new computer of mine. So, naturally, first test runs have 
problems.

Whatever I attempt to process through ly2dvi, I get this bundle of 
errors:

warning: no LilyPond output found for 'myfile'
Running LaTeX...
Running dvips...
error: dvips: command exited with value 256
Traceback (most recent call last):
  File "/sw/bin/ly2dvi", line 1088, in ?
    run_dvips (outbase, extra_init)
  File "/sw/bin/ly2dvi", line 819, in run_dvips
    quiet_system (cmd, 'dvips')
  File "/sw/bin/ly2dvi", line 504, in quiet_system
    return system (cmd, ignore_error, quiet = 1)
  File "/sw/bin/ly2dvi", line 256, in system
    error (msg)
  File "/sw/bin/ly2dvi", line 152, in error
    sys.exit (2)
SystemExit: 2

I reinstalled TeTeX (which holds dvips, I understand) and the error 
didn't change. I've tested lilypond on Mutopia ly files, and it's the 
same error.

What do you think? Thanks.