Create a bootable Lion USB Stick

To install Lion on a new HDD or SSD you need some kind of installation medium (at least on older Macs). Here is an easy way to create a bootable Lion USB Stick from your "Install Mac OS X Lion" App. You'll need an empty 8 GB USB Stick. 

0. Redownload the "Install Mac OS X Lion" Program from the App Store: 

"(While holding down the OPTION key, click on the “Purchases” section

You should see “OS X Lion” and “Install” should now be gray and you can click that to re-download Lion (you may have to re-authenticate within the App Store with your Apple ID)."

(Thanks asorta from MacRumors)

1. Locate the "Install Mac OS X Lion" program in your application folder with the Finder. 

2. Right click on it, and choose "Show Package Contents".

3. Navigate to "Contents/SharedSupport/InstallESD.dmg". This is the install disk.

4. Start "Disk Utility" 

5. Click on your USB Stick (the device not the partition) and click on the "Partition" tab 

6. Click on "Current" and choose "1 Partition". Choose "Mac OS Extended (Journaled)" as Format.

7. Press Apply. Now, choose the "Restore" Tab. 

8. Drag your "InstallESD.dmg" disk image from the Finder into the left side of the Disk Utility. 

9. In the Restore Tab, choose the InstallESD.dmg Image as Source, and your USB Stick as Destination. 

10. After 30 Minutes (depends on the Stick), you are done. You can test it now by booting from your stick. Hold "alt" at startup to go into the boot device selection...

This stick is good fixing a broken installation, for installing Lion from it, reseting passwords or change the partition layout of your disks. Have fun!