Restoring onto new hard drive from Image--how to install win 7??

I'm currently running (or hope to run!) Windows 7 Professional 64 bit on a Dell Computer. So here is the problem. (By the way, this is basically a long winded question on how to install Win 7 onto a NEW hard drive from the OEM disks provided by the manufacturer, but here we go. . . . )

1. Imminent hard drive failure. Purchased (from Dell) authorized replacement hard drive for my Dell Studio XPS 8000.
2. Following instructions from Windows Backup and Restore, created both a Windows Repair Disk AND generated an image backup of the drive before it failed stored OVER A NETWORK on my laptop (appoximately 199 - 200 GB of data).
3. Followed all instructions to set the Boot device for the computer for the CD / DVD drive before installing new hard drive. Yes. I removed the old hard drive and replaced it with the new one. The new one should be the primary drive.
4. Booted from disk and chose the "Recover your computer using a system image you created earlier" selection. It was a bit of hit and miss, but I did type in the right path to the WindowsBackupImageFile. I was able to select the right file.
5. It began the restoration, indicating it was restoring from image "Volumexxxxxxxxxxxx" [this is the file name given the imagebackup file].
6. This only took about 20 to 40 minutes to complete. I was then presented with another screen that said "RE-IMAGE YOUR COMPUTER. Windows is restoring your computer from a system image. . . . . Restoring disk (C:). . .
So, here's the problem. When I did this the first time, after an hour and a half I got an error message that the image restoration FAILED over the network. So, I started the whole process over. I'm currently into the process for the same hour and a half, and based on the blue status bar, there has been no progress whatsoever on this second window indicating that it is trying to restore from the image backup. If this fails again, what are my options?Please remember again that I'm trying this restoration over a network --- a wireless network. But so far, the wireless option all seems to be working normally.
Be advised that I have located the original windows 7 operating system that came with the computer. My confusion is this:
A) If the image installation fails, would I boot from the windows 7 installation disk and it takes care of business?
B) Because this is a new hard drive, won't it need all of the drivers if I use the windows installation disk? How does this work? Be advised I have the original driver and utility disk as well, but I'm concerned because I've installed a new hard drive and I'm not sure if I will need a driver for that, or how I install a new driver if Windows 7 isn't installed.
The good thing (I hope) is that I have all of the pertinent files backed up online, so I can restore documents, music, and other files from online and I've kept all the original software installation disks (or made installation disks) if I downloaded them from an online source.

Thanks in advance,
W!

Follow these steps to get a perfect Clean Reinstall - Factory OEM Windows 7. Use the latest official installer if your Dell Reinstallation DVD doesn't have SP1 to save hours of updating.

Win7 is driver-complete in the installer and via Windows Updates when you enable Automatically deliver drivers via Windows Update (Step 3). Put your network driver in the backup so if it isn't provided you can get online to enable driver updating and run all rounds of Important and Optional Windows Updates until there are no more when you keep Checking for Updates after reboots.

Only after all Updates are complete should you import any drivers still missing in Device Manager from the Dell Support Downloads webpage for your tag number - not a driver disk outdated as soon as it's pressed.

You can break into your image to rescue files and anything else which needed backing up compiled in Clean Reinstall - Factory OEM Windows 7 using the Device Manager on the machine which stores the image: Virtual Hard Disk - Create and Attach VHD. You might even be able to use the image if you copy it to an External HD.

I agree, Rich, and would convert the stored image to an Acronis image using True Image to apply it any way and place I want. But the paid program is required.

So you're seeing the limitations of WIn7 backup imaging here. It would be better in the future to use free Macrium to Image your system or if you have WD or Seagate HD's in the mix use the free Acronis app on the Support site for either.