Q: OSX Mavericks can't be installed because a recovery system can't be created

Please see

Installer reports "OS X could not be installed on your computer" or "This disk cannot be used to start up your computer"

OS X: "Some features of Mac OS X are not supported for the disk (volume name)" appears during installation

Can you also post the output of diskutil list?

I would suggest that you look at this link and make sure your computer can do Internet Recovery before you make any changes.

Computers that can be upgraded to use OS X Internet Recovery

You may want to remove personal information from a public forum.

If you have a full backup, would you be willing to erase the disk and install Mavericks from scratch? If you have a time machine backup, you can always restore your account and personal files (without the Lion OS). A backup would be highly recommended before the upgrade any way.