Did you run the iLife installer, and select a custom install of just Garageband? Or, just try a file copy from the installer (which will not work)? Have you tried just letting iLife install, without changing any settings? Apple never supplied OS X on a flash drive, prior Lion (OS X 10.7) Still should work, but Apple didn't provide that.
The Mac OS X Lion 10.7 is a very powerful Mac OS focusing on the security, stability, and the compatibility of the Mac. Mac OS X Lion 10.7.5 free download standalone DMG image installer for Macintosh. Please consult the owners manual or manufacturer directly for audio device specification and compatibility. 24-bit recording in GarageBand requires a Mac OS X compatible audio interface with support for 24-bit audio. AVCHD video requires a Mac with an Intel-based Core Duo processor or better.