Steps to install on second machine

Hi...  Last night I purchased, downloaded and installed OS X Lion onto an external usb hard drive that was (before installing Lion) an exact clone (used Super Duper) of my main Hard Drive on my MacBook Pro...  I want to run it for a while from this external drive before I decide if I am ready to commit it to my main hard drive on the MacBook Pro... 
I think I am allowed to install Lion on up to two additional drives with this one purchase???  Do I have that correct???  But the bigger question is the exact procedure to follow when I do decide to load Lion on to my main MacBook Pro's hard drive...  I booted into that drive which is still running OS X 10.6.8, went to the App Store and clicked on "Purchases"...  I see there the OS X Lion icon and over at the right I see a button that says INSTALL...  When I am ready to click that button in a few days, what will happen???  I assume it has to download the entire 3+ GByte installer file again, right???  And then would it take me right in to the installer like it did when I first installed this on to my cloned external usb drive??? 
It's this second install that will be more important to me than the first and I just want to make sure I understand what should happen...  Any feedback would be much appreciated...
thanks....  bob...

Thanks much...  I downloaded it again last night to put it on my second machine and just prior to doing the install, I found it in /Applications like you said and saved it to a backup drive just in case I need it again later...  thanks for the help...  bob...

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