Choose 'Mac OS Extended (Journaled) on the left. Go to the Partition tab and select '1 Partition' from the dropdown menu. If you want to burn Lion to a USB flash drive, plug it in and click on it in the left-hand sidebar in Disk Utility. If you're burning it to a DVD, insert your DVD, select the disk image in the sidebar, and hit the 'Burn' button.
Open up Disk Utility and drag the DMG file into the left-hand sidebar. Navigate to Contents > SharedSupport and look for a file called 'InstallESD.dmg'. Right-click on the installer and hit 'Show Package Contents'. The installer should show up in your Applications folder. On a Macĭownload Lion from the Mac App Store. However, the other option is to use a Virtualbox VM to run OS X temporarily (scroll down for that info). As far as I know, the only way to properly create a bootable Lion disc/disk is to use Disk Utility on a working Mac.
