Adobe has published a new knowledgebase article outlining the known issue with Adobe products running under Mac OS X 10.7 Lion. http://kb2.adobe.com/cps/905/cpsid_90508.html

Highlights: CS2 and older won’t run because they require Rosetta, some Adobe applications may hang or quit if the Java Runtime isn’t installed, and Illustrator CS5/CS5.1 can’t save or export if the save location is set to the Desktop. Also noteworthy is scrolling behavior may be opposite as expected, and droplets don’t work in Photoshop CS3/CS4/CS5.

If you plan on running Adobe applications in Lion, reading through this Adobe knowledgebase article should be considered required reading.