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A handful of Mac users have reported problems upgrading their system to Mac OS X 10.7 Lion, with various error messages, problems and quirks stemming from the Mac App Store download.



From AppleInsider:
One growing thread at the official Apple Support Communities relates to an issue where users are asked to select the disk where they want to install OS X. When attempting to select their Macintosh HD as the install destination, user 'Dancepal1948' said they are given the error message: "This disk cannot be used to start up your computer."

Another user, 'Junction10,' said they had no problems installing Lion on their MacBook Pro, but when attempting to apply the upgrade on their iMac, the same error occurred.
  Users report issues installing Apple's Mac OS X 10.7 Lion