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I've made a bootable lion disk by extracting the InstallESD.dmg from the lion installer app's package contents. - (Contents>SharedSupport>InstallESD.dmg)

When booting from this disk, can you run disk utility or any other utilities from the menu bar (like you could in the SL install)?

Thanks

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Yes, you can. plug in the disk, boot up in it by holding down option, select the disk, and and then run disk utility from the main window.

Why do this however, when you have the Restore partition available to do this without a disk?

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The reason you might want to do this is if you had a mac with SL and you wanted a clean install of lion in one step :) –  Alex Coplan Aug 6 '11 at 0:27
    
OK, I can see that then. –  Jamie Aug 6 '11 at 0:28

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