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From https://www.apple.com/macosx/whats-new/features.html#interne...

Internet Restore and Utilities

* Built into Lion: OS X Lion includes a built-in restore partition, allowing you to repair or reinstall OS X without the need for discs.

* Browse the web with Safari: Recovery mode now includes the Safari web browser, so you can check your email or browse the Apple Support site.

* Reinstall OS X: OS X can be reinstalled on your Mac from recovery mode.

* Restore from a Time Machine backup: Use recovery mode to restore your Mac from a Time Machine backup.



That doesn't answer the question at all. A dead hard drive will have an inoperable restore partition.

This seems like it will be a total PITA. PC restore partitions I've worked with always had weird quirks (strange partition types, special MBR boot loader code) that make them hard to copy/move to a new drive successfully.




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