You're right. Partition Magic is not a system transfer utility but I am curious as to why your Drive Image program did not work. First, you need a version that supports XP w/NTFS and I believe this means 5 or above. You don't use the image function but the drive copy function of the program. Since I have used this many, many times with and without success, I would be curious as to what went wrong and, if you still have the 80 gig drive in tact, maybe try again. Now, if you did not override the default to hide the original partition of the drive you are copying from, you cannot use it without reversing this. You do not partition and format a drive before using drive copy from Drive Image. Next, it seems you got something transfered and tried to use the recovery console but it sounds as if you'd be better off doing a repair install. The rebooting behavior can occur if you've breached the hardware change limit and a repair installation / reactivation can fix this. Good luck.