Thanks for the response. A similar question was asked in Apple's forums, and it was indicated that it wouldn't work. What I'm wondering is this - at the end of the Lion installation, it does go online to connect to Apple. It would make more sense that this essentially verifies that you're eligible for the Lion upgrade.
Thanks for the response. I'm not trying to make money or nor do I advocate piracy. My friend's problem is that he's bought Lion via the App Store, but is having trouble downloading it. He has to go to a free WiFi hotspot (like Starbucks) to get decent speed to download it, but gets errors about half way through.