Trouble with lilypond-book

[Lyle Raymond]

I'm confused...

I'm working on a theory book for guitarists.  In the book, fretboard diagrams 
are created by first importing a {picture} file, titled "open_fretboard.tex," 
then superimposing another picture containing x's, o's and whatnot on top of 
it.  Thus, the structure of a fretboard diagram in chapter one is as follows:

book.tex
     ^---contains--->"\input{chapter1.tex}"
chapter1.tex
     ^---contains--->"\input{open_fretboard}.tex", then "\begin{picture}"

This works until I want to use lilypond's chord symbols.  I tried:
"\begin{lilypond}
        <chord stuff>
 \end{lilypond}"
...inside the {picture} in chapter1.tex, but "$lilypond-book book.tex" results 
in an environment undefined error.  Where should the lilypond code go, and 
upon what file do I run lilypond-book?

Lyle  



 -----BEGIN GEEK CODE BLOCK-----
  Version: 1.0
  GMU/O d+@ s: a C++ UL P+>++++ L++ E-(---) W++ N++ o--@ K- w+(--) !O !M V 
PS--(+) PE++ Y !PGP t+() !5 X+() R+++($) tv b++>+++ DI@ !D G e++>++++ h---@ 
r++ y?
  ------END GEEK CODE BLOCK------