We present a theoretical analysis of dilute gas Bose-Einstein condensates with dipolar atomic interactions under rotation in elliptical traps. Working in the Thomas-Fermi limit, we employ the classical hydrodynamic equations to first derive the rotating condensate solutions and then consider their response to perturbations. We thereby map out the regimes of stability and instability for rotating dipolar Bose-Einstein condensates and in the latter case, discuss the possibility of vortex lattice formation. We employ our results to propose several novel routes to induce vortex lattice formation in a dipolar condensate.
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