Edit! Looks like all you have to do is take the Soundlower.kext from the zip on that site and drop it on Kext Utility and so far its working so it seems to install ok.
Since Soundflower wont work with Lion Ive been searching for a solution and found this.
Its a script you should build in terminal but I cant figure out how to make it work. Theres a zip of a modified Lion soundflower on this site that you need too that holds the script. *Anybody can help me out here?
$ cd /sound_flower_lion_1.5.3/Tools
$ ./build.rb --dep
$ "enter password"
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