Lion update today crashed MacBook Pro

Even though wiping and re-installing is a pain in the rear I have to say that since I bit the bullet last night my MBP has been running tip-top. I'm not gloating or putting down other sensible ways. All I know is my K.Panic was terrible and really embedded; since the wipe all has been well. I didn't do a full TM restore, I selected what I wanted and I was still able to work while files transfered. Again, good luck to all I wouldn't wish this situation on anyone.

You shouldn't need to "wipe" and reinstall. Reinstalling 10.7 and then 10.7.4 will fix the problem and preserve all your files, apps and preferences.

It seems I am the only one here that can NOT use the Cmd-R or Option boot method to fix it. None of the keyboard combo works for me, and I've tried all of them, resetting PRAM, SMC, safe mode... Nothing worked. Just a grey screen. It seems that only one key works in my keyboard -- power :(

I'm using a mid-2010 MacBook Air 13".

Have you tried booting from your system CD or DVD using the C key?

I have a MacBook Air, and I don't have a recovery usb of lion either. I guess taking it to service is the only way, which is especially bad since I am traveling and need to use computer daily...

So, word of advice to those of you Apple fans out there, your apple product WILL fail, the question is only when, not if. Either take advantage of your credit card company's extended warreny like Amex or buy an Apple Care...

Boysetsthefire.. Could you help me? I have a mac book pro and done everything you said with holding cmd and r and when I get to the re install page it says recovery hd is locked??? Please help me

Don't select Recovery HD (you can't). Select Macintosh HD, or whatever the name of your startup drive is. After that, it should be no problem.

But will that not erase all of my files??

I did the boot from recovery partition/online reinstall today. Took about 45 minutes for the download and another 45 for the reinstall, all with no intervention needed once it got started. All my accounts and data look good. What surprised me was that I got a 10.7.4 system rather than the 10.7.3 that previous notes led me to expect. What I see now in Software Update looks like what I saw before the problem (based on my very bad memory) except that the Thunderbolt update is not there and a Supplemental 10.7.4 update is. But I think I just may wait a while on those!

OMG Update just killed my MacbookPro 17 freaking out, must stay calm and read all of your posts....

I have the issue where the installer no longer sees "macintosh HD" as a install target drive. only the locked recovery drive

Well after that suspenseful few days I think we are back on track. So from what I am getting, it is the update to Thunderbolt that caused the kernal panic error. By running recovery mode most people, including myself were able to get back to normal. I did read that someone was having problems with the recovered OS recognizing the drives or partitions involved. I'm not sure what would cause that, but if I were to try anything it would be to try and do recovery again. Make sure the destination for the recovery is correct. I also went back about a day and selected the backup from there. Today I successfully updated all software, I still did not notice an update for Thunderbolt in the selected items. Everything seems to be working well now. Thanks to the community for providing the timely information needed to resolve, correct, and understand this issue. I do think Apple needs some better assistance procedures and protocols. I don't think asking a question should be charged from the beginning, that just seems in bad form. Especially something that is Apple's fault.