Need to repartition to install Lion?

When I am propmted to select the disk to install Lion on, my startup disk has a message This Disk doesn't use the GUID Partition Table Scheme...
What? I need to repartition my mac to install Lion? I have lost my systems disk so now I am screwed? ***, does that mean I will also have to reinstall all of my existing applications if I figure out how to repartition my drive? Can I easily restore the apps, with all supporting files from my existing TimeMachine backup? This really has me upset, as I didn't see any mention of this on the Lion page on the Apple Web site, nor did I see it mentioned in the App store before buying

I ran Disk Utility Verify and found there where some errors to correct, so I did a repair. After the repair was successful I tried to install Lion again. Once again it's telling me to repartition my hard drive.
S.M.A.R.T. Status : Verified
Partition Map Scheme : Apple Partition Map
So it looks like Apple changed the Partition Map Scheme at some point from Apple Partition Map to GUID I guess a re partition is the ONLY way around this?

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