The was a full system image made with Windows 7 Imaging tool?
TBH, Im not sure how to get it to recognize the image for a restore.
I have tried Win7s Imaging tool, and had several issues with myself trying to get it to do what I wanted it to do.
Perhaps others with knowledge of it can help more.
Unless it has something to do with file permissions.
If you've already installed a fresh copy of Windows, something you may want to try, if all else fails:
Give Acronis a shot.
The reason I suggest it, is because it is capable of converting a Windows Backup into an Acronis one.
If its able to, you should be able to launch a restore right from Windows.
Sadly, Acronis is a Paid program. But it does offer a 30day trial.
You will not be able to restore from a boot disc with the trial, but you can from Windows.
many may disagree but ..
I do think your best best will be to switch over to something like Macrium Reflect or Acronis for future imaging.
I really like Acronis, because it just works as I expect it too.
Macrium is free, and is highly recommended as well.
Either way, these 2 seem to be the most recommended and most reliable.