OK. You have a Boot Camp partition which is why the issue. See the following:
It seems the issue is that the space at the "bottom" of your available space when Lion installs it's partition is already occupied by BootCamp. The fix was to go into Disk Utility; Select your Hard Drive; Select Partition; Move the bottom of your main partition "up" a bit to create a space for Lion; close Disk Utility; Install Lion; once Lion is successfully installed, go back into Disk Partition and drag the bottom of your main partition back "down" to the bottom of the window.
In your case use Disk Utility to "shrink" your OS X partition a little more than 1 GB.
To resize the drive do the following:
1. Restart the computer and after the chime press and hold down the COMMAND and R keys until the menu screen appears. Alternatively, restart the computer and after the chime press and hold down the OPTION key until the boot manager screen appears. Select the Recovery HD and click on the downward pointing arrow button.
After the main menu appears select Disk Utility and click on the Continue button. Select the hard drive's main entry then click on the Partition tab in the DU main window.
2. You should see the graphical sizing window showing the existing partitions. A portion may appear as a blue rectangle representing the used space on a partition.
3. In the lower right corner of the sizing rectangle for each partition is a resizing gadget. Select it with the mouse and move the bottom of the rectangle upwards until you have reduced the existing partition enough to create the desired empty space. The space below the resized partition will appear gray. Click on the Apply button and wait until the process has completed.
Remember that you only need to shrink the OS X partition a little more than 1 GB. Now, when you try the Mountain Lion installation the installer will be able to make the Recovery HD.
I opened Disk Utility, a new window came out which has the followings I'm this order:
1 TB TOSHIBA MK1059gsm media
Mac OS X Base System
When I click on 1 TB TOSHIBA MK1059GSM Media the following information comes on the right side
First Aid. Erase. Partition. Restore
If I click on Partition, the following comes out:
Current. Name: Macintosh HD
Format: Mac OS Extended (Journaled)
All buttons are greed such as options .....Revert......Apply
Disk Description: TOSHIBA MK1059gsm media. Total Capacity: 1 TB(1,000,204,886,016 Bytes)
Connection Bus: SATA. Write Status: Read/Write
Connection Type: Internal. Partition Map Scheme: GUID Partition Table
If I click on Disk1, the following information:
Disk Description: Apple disk image. Total Capacity: 1.52 GB(1,524,250,624 Bytes)
Connection Bus: Disk image. Disk Write Status: Read/Write
Partition Map Scheme: Apple Partition Map
All buttons on this page are greyed not clickable as well as when clicking on Mac OS Base System
So there is no way of changing anything here, what should I do?
There you go!
You have a Fusion Drive setup on this computer? You have a MacBook Pro that has 10.7.5 installed, so this Fusion Drive setup did not come from Apple. Whatever you have it is encrypted. You cannot make any modifications until you disable the encryption.
Are you sure the computer doesn't already have Mountain Lion installed as opposed to Lion? Mountain Lion supports a fully encrypted drive. Fusion Drives aren't available on laptops, only on the iMacs at present.