I had a related but seperate issue that I contacted Apple about and the Technician referred me to the site below. This is a really small (freeware) application that, when combined with the Lion installation file you download from the Apple Aps Store, will create a fully functional bootable Lion installation disk on either a USB drive or a burned disk (your choice). I downloaded it and tested it. It works great. If you go to the Ap store and re-download a copy of the Lion Install file (which you must do to make this ap work) stop the Lion installation after the install file is dropped into your applications file (again, stop the installation after the download) and move a copy of it into any other folder along with this really cool (and free) application - then run the application. It will use that copy of the Lion installation ap to create a BOOTABLE LION INSTALLATION DISK on either a USB drive or a burned disk. I tried it. IT WORKED GREAT!!! I tested the new install disk and it is both bootable and works great. It is almost identical in use as the old Snow Leopard bootable install disk. I created mine on a USB drive. The site for the download is: http://blog.gete.net/lion-diskmaker-us/ Again, it is free. It is also remarkably small in file size. But you will need to download another copy of the Lion installer from the Ap store and place it in a file folder of it's own with Diskmaker.