Can't install Lion get the message "recovery system can't be created" -see picture of my screen

So I have been trying to install Lion for 2 days. The screen below is what I keep getting. Here's what I have done so far...
1.) Delete files (I have now have about 50GB free)
2.) Complete all updates (running 10.6.8)
2.) Disk Utility repair with Snow Leopard CD
3.) Remove Lion and re-download
4.) Went to the www.apple.com/support/norecovery page, but the solutions didn't seem to help or really apply to my problem
No matter what I do, the following occurs:
1.) Starts installing (says it has 33 minutes to go)
2.) Gets to about 29 minutes and I get the screen below!
I even went to the Apple store today and tried some of this with a One to One assistant, he couldn't resolve it either and hadn't seen this message before with anyone else. When he asked a "Genius" he told me to delete more files. But that didn't help either!!
HELP!!!!

Hi!
I Have a macbook pro 13' core 2 duo 2.53Ghz and am getting the exact same reaction!
it's been a few hours since i've been trying to install lion. Download took about 2hrs and everything fine until, each time i've tried, announcing exactly "33 minutes" and popping up that screen a few minutes after a stuck "29 minutes"
Anyone has ideas?
I've seen a lot of threads and thought it might be because of that Paralell windows 7 i never use. But I even tried deleting it all and the problem persists. I'll be at the apple store tomorow and try to figure something out.
this is just not fair...
my screen:
Yet... I'm still really excited about Lion! I'm pretty sure this nightmare will be worthy after all! Thanks for helping out!

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Can't install Lion get the message "recovery system can't be created" -see picture of my screen

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