Hey, bro. As you saw, I had the same problem as you in the past. I could never retrieve my files. You should have never used Toshiba's software to backup your files. I talked to their tech support and they said this is a common issue with it. After being pulled every which way, they finally said that since you're not restoring those files on the same copy of Windows, it won't work. How genius is that, seriously? Backups are frequently used when upgrading Windows as a means of retaining your files. I've said it before, I'll say it again - stay away from Toshiba for Hard drives. If you Google Toshiba 1TB external hard drive reviews, you will see NOTHING but bad things said about it.
Here's some for your viewing pleasure.
Customer Reviews Of TOSHIBA 1TB Black External Hard Drive 3 years Manufacturer Warranty PH3100U-1EXB
Toshiba 1.0TB Desktop External Hard Drive - Toshiba (view from lowest to highest)
Toshiba 1TB Desktop External Hard Drive Reviews | 88 reviews | Buzzillions.com (same thing, sort by lowest)
And note, most of the positive reviews are most likely people who haven't had the drive for very long. Aside from this problem, the drive has MANY other drawbacks to it. So much that I don't feel like going into detail about all the things wrong with this drive. Why do you think they're going for so cheap right now? Here's a thread on another site that is kinda related to it. Enjoy reading this haha.
Virtual CD removal on Toshiba 1tb Ext. HDD - Tech Support Forum
But, yeah.. I'm sorry for your loss. You'll just have to start anew and bite the bullet. You could potentially try to reinstall your last copy of Vista and see if you can restore your files, then either format the external, drag and drop all your files, and retry installing Windows 7 again OR throw that drive out the window, get a good HDD and buy an enclosure for it and use that as your backup. I tried doing this, but it didn't work for me. And I was upgrading from Win7 32bit to 64bit. But I never had an install disk, so my means of redownloading and installing Win7 32 didn't guarantee I'd have the same exact copy.
And there's always means for getting the files you had before, such as music, programs, etc. if you're smart about it. As for your personal documents though, that's not so fortunate. And one last word of advice, don't use Norton. Download AVG9 Internet Security or something similar. The free version has everything you need, but you could upgrade to the full version by purchasing a product key or by other means..
Here's a decent option for a raw drive that you can buy an enclosure for:
Seagate 7200.11 ST31500341AS Barracuda Hard Drive - 1.5TB, 7200RPM, 32MB Cache, SATA-3G (OEM) at TigerDirect.com
or
Western Digital WD10EARS Caviar Green Hard Drive - 1TB, 3.5, SATA 3G, 64MB Cache, GreenPower at TigerDirect.com
or this one, it's pretty close to the same one I got for $99 at the time
Newegg.com - Western Digital Caviar Black WD1002FAEX 1TB 7200 RPM 64MB Cache SATA 6.0Gb/s 3.5" Internal Hard Drive -Bare Drive
Then be sure to get a good enclosure; Rosewill is good for those so that's what I'd recommend. Check my system specs to see exactly what I have.
Lemme know if you need anymore advice/help. Take care.