If you’re serious about Lion development, keep in mind that virtual machines have limitations, and you should probably just configure your own partition to run a developer preview.
This is really only recommended for more technically inclined Mac OS X users. If you want to use Mac OS X 10.7 Lion Developer Preview, but don’t want to bother setting up another partition or updating your current Mac OS X 10.6 installation, you can choose the third option: Run Lion on a virtual machine with VMWare.
