The answer is ctrl+mouse click. Robert Carter made a podcast explaining the 
whole process.  His directions are very clear.

I just burned the disk image to a DVD instead of a USB drive. 

Kristyn
On Aug 6, 2011, at 9:36 PM, Matthew Campbell wrote:

> Hello everybody.
> Did we ever end up solving the VO dragging and dropping of the flash drive on 
> the the destination field in disc utility? I'm trying to make a Lion drive 
> right now and am having this issue.
> Thanks all.
> 
> On 2011-07-24, at 6:00 PM, Dan wrote:
> 
>> Hello,
>> I followed the instructions in Disc utility and as far as the drag and drop, 
>> I got as far as setting the drive to be drug, but it never completed the 
>> drag. Then once I got it to complete, but then it became the source 
>> destination.
>> This whole drag and drop thing is really iffy at best.
>> I have Lion on a DVD, but for what ever reason, I am totally unable to get 
>> the dmg file to properly be placed on the flash drive. I have never had any 
>> problem with dealing with image files and using disk utility.
>> Does any one have any suggestions for doing the whole process of putting the 
>> install dmg file on the flash drive as a bootable drive, I don't mean the 
>> part about creating the partition and stuff, I mean the restore part, it 
>> just isn't working at all. So again, instructions for VO only would be 
>> appreciated.
>> Thanks,
>> 
>> 
>> 
>> Dan
>> 
>> On Jul 24, 2011, at 1:38 PM, Courtney Currant wrote:
>> 
>>> Hi,
>>> I partitioned a 32 gb flash drive, then I went to the restore tab in disc 
>>> utility. I chose the .dmg file as my source, but how can I choose my 
>>> destination as the flash drive?
>>> Thanks,
>>> Courtney
>>> On Jul 24, 2011, at 5:53 AM, Jürgen Fleger wrote:
>>> 
>>>> Hi Teresa and list,
>>>> 
>>>> Am 24.07.2011 um 08:03 schrieb Teresa Cochran:
>>>> 
>>>>> I saw a few questions on this list about this, so I looked it up. Here's 
>>>>> a link. Note that it's geared more toward sighted users, but basically it 
>>>>> involves taking the .dmg file and working with it in Disc Utility.
>>>>> http://www.redmondpie.com/how-to-make-your-own-os-x-lion-bootable-usb-flash-drive-tutorial/
>>>> 
>>>> Quite interesting. The only issue: There is no Lion file in my application 
>>>> folder. Do you have an idea what to do then?
>>>> 
>>>> Thanks and 
>>>> all the best
>>>> Jürgen
>>>> 
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