Apple installs a 'recovery partition' but all it does is allow you to connect to Apple for 4-5 hours to download Lion. Not a lot of fun. By the way it does not ask for your Apple ID/Password to download, it checks the machines signature. I can understand the logic of cost cutting and not including a recovery USB stick or discs, dont agree but understand. But, why didn't they just put a full Lion install image on the drive to save the 5 hour download?