However, the other option is to use a VM to run OS X temporarily (scroll down for that info). As far as I know, the only way to properly create a bootable Lion disc/disk is to use Disk Utility on a working Mac. (Make sure the usb is partitioned as mac bootable then use use the image recovery and put your mounted OS X iso into the source and your usb as the location.) restart your computer while holding down the option key. Rufus does a good job in putting password rest disk ISO into an external drive but fails to support Mac OS. Luckily, if you own another computer, being it Windows or Mac, you can extract iSO image to USB drive or CD/DVD and boot up the password-locked machine from this disk.
