Thanks, I will try it one more time. I am trying to update Snow leopard to Lion.
Then ignore the restart directions I gave you, I was thinking earlier that you were trying to reinstall Lion. I understand now.
Have a read here. There seems to have been similar problems with this. Just a word of advice, copy your Lion Installer that you downloaded (Should be in Applications called InstallEDS.dmg) to an external drive or even duplicate and save it elsewhere on your computer in case you need it later. It will save downloading it again.