Boot to the Recovery HD: Restart the computer and after the chime press and hold down the COMMAND and R keys until the menu screen appears. Alternatively, restart the computer and after the chime press and hold down the OPTION key until the boot manager screen appears. Select the Recovery HD and click on the downward pointing arrow button.
Reinstall Lion: Select Reinstall Lion and click on the Continue button.
Note: You can also re-download the Lion installer by opening the App Store application. Hold down the OPTION key and click on the Purchases icon in the toolbar. You should now see an active Install button to the right of your Lion purchase entry. There are situations in which this will not work. For example, if you are already booted into the Lion you originally purchased with your Apple ID or if an instance of the Lion installer is located anywhere on your computer.
Unfortunately, none of that worked.
Apple store said that I fad never ordered anything from them - a big lie, as ant perusal of my apps in ITunes would show.
Command - R did nothing.
I suppose I will have to shell out a ferther $32
Your advice did work - eventually, and I now have a working Lion again.
But my original problem remains.
Whereas in Lion 10.7.3 I had a multitude of displays to choose from, I now only have two in Lion 10.7.4.
With limited eyesight the choices of1920x1200 and 960x600.
One is too small and the other much too large for my limited vision.
I have been ablr to overcome some of the problem by changibg font sizes, but have been unable to increase the fon size used on the menu area.