if that fails,
Take the OS X installation disk and do an Erase and Install on that disk.
Then try again with the Time Machine restore.
Trying to restore newly replaced harddrive from external Time Machine backup to iMac. Computer was reset as new machine at repair shop. Should be simple (famous last words), but get caught in a loop while File transfer appears to be calculating size of items selected for transfer. Screen fades out and retiurns to welcome screen.