Geeker, I too am trying to pick things up as I go along, and any terminology I use is guessed from reading 225. In fact, Roz on 225 recommends using "Playtex" instead of L&S when you are splitting one word apart instead of a phrase, but I don't know if it has caught on. Quisling gave a couple of great examples of either L&S or Playtex clues.
I am still clinging on to my theory, even though people appear sceptical. I have seen a number of clues where a dash is used to represent the two letters we have here and midweek crosswords in the Guardian regularly have even more convoluted clues. I might have expected this particular one to come from Paul, who requires lateral thinking to the nth degree, but then he would probably have used "O" in the way Gemini suggested.
To be convinced I am wrong, I would need someone to show examples of "lover with a capital O" being used in the wild. It's an ingenious idea and much simpler than my own, but it's not a phrase I've ever seen.