I have accomplished this by downloading and running a free application called
Lion Diskmaker 2rc2.app. They welcome donations but you are not obliged to pay.
Once you paste this application into your application folder, open it. It will
locate your .dmg file and will ask you on which drive you w
> Okay, read the instructions on how to do a clean install from a usb thumb
> drive. And after you partition, or erase and mount the USB storage, it says
> put the dmg file in a folder where you can find it. I did all that, now how
> do I drag it to this usb drive so I can restore. I launch
