SymptomsThe below instructions will allow you to create a virtual machine with Mac OS X Lion inside. To proceed you need to have the latest build () of Parallels Desktop 7 for Mac installed and the "Install Lion.app" application downloaded from the Web.
Note: It is not even necessary to have Lion as a host OS now.
Resolution1. Start Parallels Desktop application;
2. Run Parallels Wizard for creating a new virtual machine (File -> New...)
3. Double click on "Install Windows or another OS from DVD or image file" icon:
4. You will be placed on New Installation page. In 'Install from:' field select"Choose an image file..." and browse to the 'Install Mac OS X Lion.app' file. Click Open. Then click Continue.
Note: If the 'Install Mac OS X Lion.app' file is grayed out at this step, it means it's corrupted and you need to obtain a valid copy of it
5. Specify the new virtual machine name and click Continue to create the VM with default settings;
6. Select your Language, choose to "Reinstall Mac OS X" and click Continue;
7. Follow the rest of the Mac OS installation wizard to complete OS X Lion installation.