If the goal is to have a USB drive that you can take to a place and install Lion, you could just install Lion onto the USB drive. Run the Install Mac OS X installer and let it format the drive, install everything and then when you create your admin account on that OS, you can copy that InstallEDS.dmg (or better the whole Lion Installer program) onto the drive.
Then, you can boot any Mac holding the option key to get into the Startup Manager and insert the USB drive.
Once that Mac boots (and it will be slow since writing and reading to a USB drive is orders of magnitude slower than a modern HDD), you can run the installer against the internal drive of your Mac that is currently booted from the USB drive.
Sorry it's not a direct answer - so you could use this if no other answer appeals to you and solved your direct problem of getting InstallESD.dmg contents as a bootable image itself.