OS X :: Restoring From A Disc Image?

So I had to have my macbook pro HDD replaced (applecare) and I made a disc image backup beforehand and put it on my external HDD.

I just picked it up from the apple store today, and called tech support for help with restoring it from the disc image. I was instructed to put the install disc in and boot holding the 'c' key, then go to disc utilities, to the restore tab, find the image as a source, and then drag the internal HDD volume to the destination field. It didnt work, so I was transferred to a senior advisor, who told me to do the same thing. The only time it would work is if I dragged the indented one that reads "Macintosh HD" instead of the one with the GB size and brand name. The senior advisor told me that it wouldnt work for him either (dragging the volume) and dragging the macintosh HD isnt how it's supposed to work, so he couldnt guarantee a proper result. It didnt work anyway. I dont remember the error message.

So he starts telling me that the best option might be to install the operating system from the discs, update to 10.5.8, and then just copy the "user" folder and then move everything where it is supposed to be. I wasnt particularly impressed and I'm not convinced that it has to be that difficult or time consuming.