Cannot launch OS 10.7.3(downloaded) on iMac Model A1311...

Upon loading software to iMac, Message Alert States: "Recovery system cannot be created".
What is solution for computer amateur?
iMac is a Model A1311-2389, mid 2010 production, "Core i3" 3.2 Ghz Intel, 21.5" Aluminum,  1TB HD w/ 8X SD.
Lion 10.7.3 was downloaded from iTunes.
I also have a LaCie 500 GB external hard drive and it has been "scrubbed" & now has only the GUID Partition in place. I tried to load Lion OS 10.7.3 to the external hard drive, and it appears to have loaded it, since it shows the following:
Version: 10.7.3
Format: Mac OS extended (journaled)
Capacity: 499.25 GB
Available:493.58 GB
Used: 5.67 GB on disk
Clicking on the External HD, shows the four folders: Applications - Library - System - Users
I thought if launching was going to be a problem for the iMac, I'd have Lion 10.7 on the external HD.
I have been using Apple computers since I bought my first one in 1990, a Mac SE @ $5K.
From there through OS 10.6, I have never had such a difficult time installing an operating system as OS 10.7.
Any assistance will be appreciated, but "speak" in plain terms as much as possible. Technical nomenclature can stop me in my tracks easily. That may make anyone with the solution, having a difficult task before them.
I
I also would like to launch 10.7 on my Macbook, mid 2008 production, which has 10.6.8 installed.
Hope this helps,

What type of router are you using? I would set up a static IP for the printer. Here is how:
Printer Does Not Maintain Wireless Connection
Hope this helps!!
-Sean
-------------How do I give Kudos? | How do I mark a post as Solved? --------------------------------------------------------

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