I ran:                dvips notes3.dvi -o notes3.ps
> and it aborts with the message:
> -----------------------------------
> dvipsk 5.66a Copyright 1986-97 Radical Eye Software (www.radicaleye.com)
> ' TeX output 1999.09.03:1550' -> notes3.ps
> <8r.enc>.
> This is DVIPS, t1part module
> Error: xydash10.pfa is not a valid PFA file
> -----------------------------------

Get the .pfb versions from the TeXlive4 CD or from
 http://www.yandy.com/download/xy_fonts.zip

Install them in:
/home/software/group1/TeX/share/texmf/fonts/type1/public/xypic/

Actually, the Xy-pic on CDS seems to be only version 3.3
whereas the latest is 3.7 (on TeXLive4).

You can install individual packages from TeXLive4,
so doing this for Xy-pic would be a good idea.

After doing this, check the contents of
/home/software/group1/TeX/share/texmf/dvips/xypic

Currently it has:
xy.map         xy33dict.pro   xypic.map

after installing v3.7 then it should have: xy37dict.pro
and  xy.map  should have:

xyatip10 XYATIP10