Yes, I'm having the EXACT same problem. It's related to a checksum failure, which you can see if you look at your logs. My last attempt looked like this:
2011-10-20 18:38:05 -0700: Verifying
2011-10-20 18:39:55 -0700:
2011-10-20 18:39:55 -0700: Checksum failed.
Expected 17EEE74E
but got C4C4257F
2011-10-20 18:39:55 -0700: Could not restore - error -206
It should be noted that I am attempting to create a bootable USB key from a computer that came with Lion pre-installed, not one that was purchased from the Mac App Store. I used the following procedure to get a copy of InstallESD.dmg:
http://hints.macworld.com/article.php?story=20110831105634716
Note that there are no errors whatsoever with the disk image. It verifies and checksums fine, and doing a repair with disk utility on the image shows no errors.
Also note that using Carbon Copy Cloner or SuperDuper! to restore the image to a USB stick or an actual external hard drive works. No errors.
And finally note that burning the image to a DVD also works with Disk Utility or Toast. No errors and it verifies fine.
So, the only issue is when using Disk Utility to restore, for some reason the checksum fails. Why?