Alrite, chillin's! I've spent a few hours researching how to employ ProTools onto my 10.7, and had a few unsuccessful attempts, but it works. Finally!
Here's the details of how I got ProTools 8.0.5 to work in OSX 10.7:
*It may save you some time if you disable your startup items before performing this install*
1a. Uninstall ProTools. Only do the partial uninstall -- I didn't find doing a complete uninstall necessary. (It may make you restart.)
1b. Update your iLok driver.
http://www.paceap.com/download.html Download the "Mac OSX Extensions". It will give you a file called "macextsx".
2. Perform a clean install (Version 8.0, from the DVD if you have it). (Forced restart after install)
3. Download the ProTools M-Powered 8.0.5 Update (2GB):
http://avid.custkb.com/avid/app/selfservice/search.jsp?DocId=393671 (Avid's page)
http://secure.digidesign.com/services/avid/kb/downloads.cfm?digiArticleId=42676&localeCode=en (Direct Download link)
This update assumes you have ProTools M-Powered 8.0 installed. It won't work unless you already have an existing copy of ProTools installed. (Forced restart after install)
5. Update your M-Audio drivers:
http://avid.custkb.com/avid/app/selfservice/search.jsp?DocId=379411 (M-Audio Interface Drivers - Download Page)
I saw it posted somewhere that Lion disables (removes) the following plug-ins:
Digidesign FirewireMidi.plugin
Digidesign Mbox2Midi.plugin
MidiIODriver.Plugin
DigiDIO Midi Driver
As far as I know, Pro Tools 8.0.5 replaces these drivers.
And finally, restart (forced) one last time. After your system loads, plug in your interface, plug in your iLok, and start ProTools. Mine took about 3 minutes to load the first time, but yours could vary with the number of plug-ins you have installed.
Please respond to this thread if you have any questions. I will do my best to answer them.