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I see the gray screen and nothing shows up for minutes on the screen not even the blinking question marked folder. Does anyone know how to get it to boot as I have a new hard drive I installed and want to install Mac OS X Lion via the time machine backup. The old hard drive works fine but the boot up using the USB stick does not work.

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So I solved this problem by creating the Bootable USB stick by booting into my old hard drive and downloading and installing the recovery disk on the USB stick. Before I made the bootable USB stick on OS X Yosemite.

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