Actually, the Snow Leopard builds of Xcode will no longer work under Lion. I know this from experience - you'll get an error window stating that it can't run under Lion. I expected that, so when I did my "clean build" (clean install of Snow Leopard, patch up to 10.6.8, then upgrade to Lion), I never bothered with the Snow Leopard versions of Xcode. I waited until we got Xcode 4.1 and installed that one. if you have any beta SDKs, you'll also need to only load those specifically built for Lion as well.