Can I install 2 OSX lions on my Machine

Forgive the question, but why would you want the same OS on the same drive twice?

Nevermind why! That's an interesting idea for whatever reason! I'm having the same problem, which is a lack of a DVD containing the OS. If Lion existed in hard copy it would be no problem. One idea I had was to dual boot the original Lion install you have with a snow leopard install. That way you can get Lion from the app store and uprgade that partition.

If Lion existed in hard copy it would be no problem.

Actually that would be a problem because you would be in violation of the SLA (I'm quoting from the SL SLA since Lion is not available on a disk):

2. Permitted License Uses and Restrictions.

A. Single Use License. Subject to the terms and conditions of this License, unless you have purchased a Family Pack or Upgrade license for the Apple Software, you are granted a limited non-exclusive license to install, use and run one (1) copy of the Apple Software on a single Apple-branded computer at a time. You agree not to install, use or run the Apple Software on any non-Apple-branded computer, or to enable others to do so. This License does not allow the Apple Software to exist on more than one computer at a time, and you may not make the Apple Software available over a network where it could be used by multiple computers at the same time.

I just checked the SLA for Lion -

B. License from Mac App Store or on Physical Media. If you obtained a license for the Apple Software from the Mac App Store or on Apple-branded physical media, then subject to the terms and conditions of this License and as permitted by the Mac App Store Usage Rules set forth in the App Store Terms and Conditions (http://www.apple.com/legal/itunes/ww/) (“Usage Rules”), you are granted a limited, non-transferable, non-exclusive license:

ℹ to download, install, use and run for personal, non-commercial use, one (1) copy of the Apple Software directly on each Apple-branded computer running Mac OS X Snow Leopard or Mac OS X Snow Leopard Server (“Mac Computer”) that you own or control;

Never mind my previous question; the answer to your question is: no, you cannot.