Can't upgrade to Lion with error "can't be installed because a recovery system can't be created"
when installing Snow Leopard did you delete and create partitions on the disk using the Disk Utilities as part of the installer, or did you install direct onto the pre formatted SSD?

If the answer to the second question is yes, then a new install of Snow Leopard on the SSD, but this time delete all existing partition data and allow SL to create the partitioning and install onto the SSD from there will allow you to update to Lion without that error.