Sparse backup unbootable

[Limpinghshrew]

sorry to just let this thread die, had to send the PB to applecare and finally got it back after 6 weeks... and, well it gets worse from there but thats beyond the scope of this forum... lets just leave it at it will have to go back to service to get the display replaced.

So - details: I booted off the OSX CD and ran disk utility. I go to the restore menu. First off, I can't drag any disks to the 'source' or 'destination' fields, disks in the left hand column are hilighted instead. So I click on 'image' next to source, click on my firewire drive, but can't select my backup (a sparse image) because it is grayed out. So i boot from to the harddrive which is a fresh install of OSX. Now I can mount my backup image. From there I run disk utility, and here I am able to drag and drop into the 'source' and 'destination' fields. I restore, restart, but something must have gone wrong cause now during startup the system hangs while trying to load the login screen. I can still boot off the OSX disk but its the same situation... what am i doing wrong?