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Got a brand new MacBook Air (preloaded with Lion).

Wanted a fresh reinstall (to remove iLife apps) and went into Lion Recovery but it won't let me reinstall the Lion OS after verification. The error message is "This version of Mac OS X 10.7 cannot be installed on this machine"

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A fresh reinstall probably wouldn't remove iLife apps anyway. The installer discs that shipped with other Macs usually come with iLife on them, so you'd wind up with them after the install anyway. To delete the apps (though I can't imagine why you'd want to), just delete them (i.e. locate them in Finder, delete, and empty the trash). – CajunLuke Jul 28 '11 at 17:16
The iLife apps have always been a separate install on older Macs, so not sure if this is true. – alimack Sep 19 '11 at 13:16

I don't have this model, so this is just advice from googling.

Have you tried the Internet Recovery?

Also it seems some people have had some success with shrinking the partition using disk utility by a nominal amount 1 GB or so and then increasing it again after install, this process might still be buggy.

Obviously if you can lay your hand on a USB stick with Lion installed, you can use that.

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