During upgrade to Lion on Macbook Pro the upgrade stops at OS utilites after rebooting asking to restore from time machine backup or install new copy

My Daughter is currently upgrading her MacBook Pro to OS X Lion.  During the upgrade the system rebooted and then stops at the OS X Utilites menu.  I have installed this same upgrade on My MacBook Pro and the family iMAC without issue.  Did the upgrade encounter a problem?  The only options are to Restore from Time Machine Backup, Reinstall Mac OS X, Get help, or Disk Utility.  
I'm not sure how recient the backup is on the TimeMachine for her system and she is concered that she may loose a lot of updates she has made to iTunes and iPhoto.  
Please help.

I have 8 GB of RAM, but would that even matter during install? Performance once installed and running sure, but I questiong whether the installer would demand that much more, or why it would affect mountain lion when restoring from a time machine backup.

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