I failed also to drag the installesd.dmg on the flash memory, I ended up creating a dvd and on imac mc508 from mid last year it installed properly using the clean install method, so as well on mac mini standard configuration 2.4ghz and as of yet 2gb ram which will be upgraded to 8 like the imac. The weirdest and most difficult install was on the macbook 13inch white from Februray 2009 when it was purchased, used same dvd to make a clean install and it kept hanging on me after 24percent and kept saying downloading additional components and when reaching 100percent a dialog box popped up saying it failed to download. I ended up putting snow leopard again then upgraded it and finally used the contents of the dmg file to install and yes it downloaded components and it is working fine. If somebody can solve this mistery of dragging the dmg file to the usb memory I would be more than happy. Wonder what happens if we format the flash drive in disk utility with mac os x journalled choosing the guid layout and at the end copy the contents of the dvd or install lion.app directly in the root of the flash drive keeping the structure of course but we use finder instead, I didn't try it and have no vision to tell about any logo of any sort just wanting to do it. Finally how would one boot from the flash memory and the most important thing how to know when to press command f5 as it doesn't make spinning sound that stops like the dvd, any clues?

Frustrated because I couldn't make a bootable lion flash drive.
Original message:
Hey everyone, ok, here is my experience so far. One of my other macs is doing the install now. Purchased the app and downloaded it. Used disk utility to make a bootable DVD, also attempted to make a bootable flash drive, but disk utility seems to require you to drag the disk image to the destination, tried that but couldn't seem to get that to work. So I used super duper to clone the image to my flash drive, actually it's an 8 GB micro SD card and a card reader, but should be the same. Attempted to boot the mac using the flash drive first, that didn't seem to work, the apple logo displayed for a while, then the screen stayed blank, waited for about 15 minutes, then I decided to try the DVD I made. Having better luck with that, mac booted, started voiceover and used disk utility to erase my hard drive, since I want to do a clean install. Now comes the interesting part, it wants you to enter your apple ID and password, I guess to verify that you have purchased 10.7. There are actually 2 windows open here, one is the installer, and there is another window behind that where you need to enter your user name and password. I know a few users have had problems with this, to get around it, press control option function F2 twice. When booted from the DVD, the function keys are configured to do hardware functions. You need to do this key stroke twice, the first time reads the window title, the second time will open the window chooser menu where you can switch to the sign in window. After entering the user name and password, it's downloading components, I figured it would just use what was already on the DVD, it's probably downloading the same thing, but there doesn't seem to be a way around that. Also, the customize option was disabled, so hopefully it will not install all of the multilanguage support, since I don't really need that or all the print drivers. Not sure why the flash drive method did not work, but so far the DVD is working.

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