

Now you wait while the Lion DMG is restored to the USB drive, this can take a while and you’ll see a screen like this: Be sure you have the right things in the right places, you don’t want to format the wrong drive – then click on “Restore”.Drag the formatted USB key to the “Destination” and check “Erase destination”.This is why we mounted the InstallESD.dmg file earlier, because we can just drag and drop the “Mac OS X Install ESD” image into the “Source” – if you didn’t mount the image, you can manually locate and select the image file yourself by clicking on “Image” Now you need to set the source disk for the restore.Right-click on the USB drive in Disk Utility and select “Restore”.

Now that the USB flash drive has been formatted to the appropriate filesystem, we are going to restore the previously mounted InstallESD.dmg file to the blank USB drive. Click on “Erase” to format the USB drive.Choose “Mac OS Extended (Journaled)” as the Format, and name the USB key what you want.Select your USB drive from the left side of Disk Utility, then click on the “Erase” tab.

Next, we format the USB flash drive, this will become the bootable Lion installer:
