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If I'd read this thread, maybe I wouldn't have installed Lion. Ouch. I downloaded Lion (which took forever). I then made a backup of the install app, following the method suggested over at ars. When I was satisfied I had a backup of Lion (so it couldn't delete itself after install), I let the install run. It finished without incident. (Whew). One thing I did before starting was I spent some time in disk utility checking over the status of macintosh hd. For instance, I re-checked to make sure the partition table was GUID. I had recently upgraded my HDD and I ignored the whole GUID partition table instruction. Luckily disk utility set it up that way by default. If it wasn't GUID, I think the Lion install would have simply refused to start but I can't help but wondering if some partition table issue is related to some of the issues reported in this thread. I hope you guys get your problems figured out or at least get back to Snow Leopard.

I think it's more likely that my problem was not repairing permissions before installing, but I couldn't prove it since I tried so many things.
 
Hello All.

I had the same issue with Lion damaging my hard drive during installation. I had a copy of Disk Warrior (version 4.2) and ran that which FIXED all my disk errors. Disk warrior was able to fix all the errors with the my Snow Leopard HD and I was able to install Lion on my hard drive without losing any information or reformatting the drive. All is up and running like no "damage" ever occurred during my first couple attempts at install. If you have Disk Warrior try it out before formatting your drive and losing all information that was not backed up.
 
How i've done it

Yesterday i've tried to install Lion. It just hanged on 33 minutes, so i didn't know what to do. I rebooted back to SL and tried to find in internet, i came across this topic. Opened Disk Utility and repaired permissions, tried again, and nothing again. Then i put the Leo Install CD and tried to repair disk, after that i couldn't boot into mac, it said in console that there is a problem with disk and it cannot repair it, so i burned a disk warrior and used it to restore it back. Then i tried to use head :). Before the "can't instantiate package: /System/Instalation/Packages/OSInstall.mpkg" i had error saying that it couldn't find a dmg file in Mac OS X Installation Directory. This were files that were copied by Lion, so i booted back to SL and checked the permission.
Owner had all rights, everyone else no rights. The main problem is that my user is not the first in system, so than booting as single user the installer just hadn't got permission to access this folder. So i changed permission for this folder(it is located in root) and for files in it to be available for everyone. And after that lion has been successfully installed.
 
Sorry to bump this old thread but,

I got the hard drive is corrupted error when installing Lion. I've tried everything in this thread- verify+repair disk/reset pram/Disk warrior but nothing has worked. Also, when I boot my Mac it goes right to the Installer...... could anyone point me towards a solution??
 
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