Paddy, I had spoken to local store who did not have an answer to my problem. They did put me through to Applecare and they suggested that I lug my 27in Intel down to the store and have them 'do the business'
whereupon I suggested (like you) that I take an 8g b memory stick to the Apple Store and they DL Lion onto it, the Applecare whizzman said "why did I not think of that".
This has now been arranged and I will be in the Apple Store on Friday morning and hopefully all will be resolved.
George
So glad they're being sensible about it, George!!
I was worried that they'd refuse to do that, since it more or less competes with Apple's sale of Lion on thumb drives. (Maybe it's a situation of "don't ask/don't tell" - if the Apple Store doesn't ask corporate if it's ok, nobody can tell them "no"!!) 