I downloaded Lion from the Mac App Store, and have been trying to install it to a 32GB USB flash drive. I want to be able to boot my Mac from this disk to use Lion and test some things out before I upgrade my Mac's main hard disk.

I formatted the drive (GUID partition map) per the Lion Installer's instructions, and was able to select it as an installation target. On three separate attempts, the installer begins installing files and gets about 2/3 of the way through before being interrupted by a kernel panic.

I had the Installer Log window open, but nothing interesting/unusual appeared there. After rebooting, I'm able to view it at `/private/var/log/install.log` on the target disk, the last message is simply a status message about extracting a package. No warnings or errors appear in the file.

The last line of the install log is:

```
Jul 31 17:02:54 brs-macbook-pro OSInstaller[358]: PackageKit: Extracting file://localhost/Volumes/Mac%20OS%20X%20Install%20DVD/Packages/German.pkg (destination=/Volumes/Skunkworks/.OSInstallSandbox-tmp/Root, uid=0)

```

The preceding lines are more of the same.

The disk is a brand new SanDisk Cruzer 32GB.

Please note that I am NOT trying to create a bootable installer disk. I want to use the disk to boot into Lion, log in, and use the computer.

Any ideas why it might be failing and how to correct it?