Dear Technogeezer,

Thank you for most valuable information and reference to suitable tools. I found downloading the fresh Lion Installer was entirely successful. VMware accepted it and I installed OSX 10.7.5. into VMware Fusion as you described.

I was entirely stymied. My latest idea was to install new Lion operating system on a dedicated partition on a 2011 iMac then make a dmg of the whole bootable entity. And migrating files will be an interesting challenge?

Obviously your method is better and cleaner. Most importantly - It Works.

So far I cannot get OSX Lion Migration Assistant to ‘see’ the external disk with my old Lion apps and settings as a preliminary to import.my account.

How do I import settings now I am in a virtual machine?