I didn't need to recreate the whole pen drive -- I just had to find the osinstall files for 10.7.2 and put them in their places. And then it could begin installing.

But now I'm stuck again.

The install starts with about "20 minutes remaining" and proceeds nicely until "6 minutes remaining" where it gets stuck for a long time before finally saying it can't continue and that I should contact the software vendor.

Would this be related to that third kext (ElliotForce...) which I did NOT install?

Or maybe because I skipped a step in your guide: you say to create a image and title it lion and restore the basesystem into it -- I went ahead and restored basesystem onto my pen drive and did the editing of the contents directly on the drive. As I continued through your guide I saw that you meant for the first LION image to be on the desktop?? and after doing the editing to restore it to the pen drive. Do you think this makes much difference?

THanks!!