Step Two: Getting Setup & Upgraded

One quick update needed to be performed before being able to program my Arduino with OSX Lion using Arduino 1.0.

Initially the Arduino software would not show my USB ports as valid serial ports.

After a few minutes of googling, I found a solution here:
http://geekscape.posterous.com/mac-os-x-17-lion-upgrading-ftdi-usb-serial-dr


Which led me to download:
Mac OSX FTDIUSBSerialDriver_v2_2_16.dmg
After extracting the dmg, I double-clicked on "FTDIUSBSerialDriver_10_4_10_5_10_6.mpkg" and could then program the Arduino again.

TLDR;

If you have trouble programming your arduino with OSX Lion, download drivers from here and double click FTDIUSBSerialDriver_10_4_10_5_10_6.mpkg.