I am using lilypond 2.6.5, mostly because my printer does not handle
postscript level 3 features which later lilypond uses.
Also later versions seems to handle ancient notation worse.

Giovanni_Pierluigi_da_Palestrina.eps is taken from 
http://en.wikipedia.org/wiki/Image:Giovanni_Pierluigi_da_Palestrina.jpg,
download and convert to eps.

I dont use lilypond-book directly in this projekt.

Instead I have tried to let the makefile handle the ly -> eps
conversion, which works great if you \include "eps.ly" in your 2.6.5
sources, for 2.10/2.11 use \include "lilypond-book-preamble.ly" (for
2.11 run lilypond with lilypond --ps -dbackend=eps file.ly). Basically
this include crops the eps to get rid of extra white borders.
(lilypond-book-preamble.ly is in your system lilypond directories, you
don't have to create it).

Then you can \includegraphics{file.eps}, \includegraphics{file-xx.eps}
or \input{file-systems.tex} (which contains \includegraphics{} for
all file-xx.eps files) from your tex source.

The file-xx.eps are stripped from fonts to save space. To collet the
needed fonts, run lilypond-psfonts <output_file> <all file.eps>.
lilypond-psfonts is a stripped down version of lilypond-book that only
collects the fonts. Look at its end (in a texteditor) to se how it is done.

I also have made a gcc -M lookalike, make.dep, a simplistic shell
script that looks into the given files to determine dependancies.
The first argument to it is what output file format you want to use.
I use eps, to be included from tex. Look in the Makefile to see how it
is run.

Don't forget to move lilypond-psfonts and make.dep to a directory in
your PATH if you want to use them.

Oh, yes, I found an antiqua font
(http://moorstation.org/typoasis/designers/lab/lab_dayroman.htm)
which I use from tex. The conversion is not complete, please help if
you like.

Have fun,
/Karl