I've had a terrible time installing things like lxml and PIL due to problems with GCC and/or caused by installing Xcode 4.x. Shouldn't this kind of stuff be pretty reliable?
sudo ARCHFLAGS="-arch i386 -arch x86_64" CC=/usr/bin/gcc-4.2 pip install
And hooray, lxml and PIL both appear to have installed successfully on Lion + Xcode 4.1.