Apparently you download it from the Mac App Store, but I don't understand how that would work, because it's not an app.
Can a developer who has installed it explain the process to me?
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I did it. (Apple Developer).
I have a second computer that I use for all beta testing, running OS X 10.6. I used the app store on that computer to download the Lion Beta Installer. It downloads and installs just like any other app. You then run the Lion Beta Installer app and it reboots and installs Lion as if it came off a CD. After another reboot, you are running Lion, with all your apps and settings working just fine.
Hope this does not defy the NDA.
May as well add my setup:
I am installing 10.7 on a second partition on my main computer.
To start with, I cloned my 10.6 system to the second partition, so I have (in effect) two identical copies of my computer's state. On one of them, I'll install Lion (as soon as everything finishes downloading). I use Dropbox (free) for syncing my important stuff between partitions (and computers). Or at least I will, as soon as it's updated for compatibility (it won't open). That way, I can always fall back to a good, current system if something breaks.
Yes, you do download from the App Store.
It downloads an installer. It appears in your dock with a progress bar. When the progress bar fills up, the icon bounces. Click the icon, and it opens an installer much like the 10.6 one found on a disc. You choose the disk/partition to install to, and it chugs away for a half hour.
Note: I'm not technically a developer; I was invited to the customer seed project. I don't think the install is any different; I was told to download from the app store (I got a code to redeem). Correct me if I'm wrong that the processes are the same.