OS X 10.7 cannot be installed on certain drives
Some people who have purchased OS X 10.7 Lion are noting that they cannot get the downloaded installer to properly recognize their desired volumes for installing the OS. When the installer lists the available volumes on the system, it may say either, "This disk cannot be used to start up your computer," or, "Lion cannot be installed on this drive." This problem occurs even after people have run Disk Utility's drive-verification and permissions-fix routines.
It appears some instances of this problem happen with drives that either have been restored from Time Machine backups or … Read more