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I bought a new iMac in the latest configuration, with Lion preinstalled.

The very first day, Lion started to crash. Even though I was not using it, it was crashing. So, I decided to reinstall. Cmd + R.

Now, I am doomed. Internet recovery takes at least twelve hours, even though I have high speed internet. That's fine too.. the sad part is when I start reinstallation, after two hours in, it again crashes. I was doing the same thing over and over again for the last three days.

Now, I have a useless huge expensive iMac which does not work at all. I called Apple support, they told me to buy a 70$ key, or install 10.6.8, then buy 10.7. Or bring it to them. I bought it online, and there's no Apple store nearby.

I'm so disappointed with 10.7 and I'm just stuck with it. I posted in the Apple forums and everywhere else I could, asking for help. Nothing.

What is my best bet? What should I do now?

Installer crash.

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1  
I'm sure there's a 7 or 14 day policy on these things, you should return it if they're not helping you and get a replacement, even though it is a software issue it could also be based on the wireless/lan card they installed. You shouldn't need to buy anything else to fix your iMac. – Sandeep Bansal Nov 28 '11 at 15:56
2  
Just send it back. They ought to take it back if it's faulty. That's called "warranty" and it applies anywhere. If you're unsure, ask their support for a return address to which you can ship the thing. – slhck Nov 28 '11 at 16:49
    
Also, it would be good maybe to investigate in the crashes: What kind of "crash"? Does it reboot suddenly? Do you see a grey curtain with a message to reboot? Does it hang? – slhck Nov 28 '11 at 16:54
    
I have attached a screenshot. It just display its typical screen which says reboot. And again 12 hrs internet recovery and again same crash. – Rahul Nov 28 '11 at 17:30

This sounds more like a hardware problem (flaky RAM, flaky CPU, etc) that an operating system problem. I'd boot it in diagnostics mode (hold down D as it starts up), run the available tests, and see if it finds anything wrong.

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