System image restore to new drive fails. 0x80042414

Original upgrade install to 300gb drive split into 3 100gb partitions, C:, D: E:  (Intel Matrix RAID 1)

After running into space issues, and one drive failing twice, I decided to move to la larger drive.

New drive is a 1TB RAID 1, partitioned 3 ways again, mounted as L, M, N (booted from the 300gb drive)

Did a Windows 7 System Image Backup to the 3rd partition on the new drive. (N:) It backed up C: and D: into a file, taking about 110GB of space.

Disconnected the 300gb drive, booted to the install DVD and selected System Repair.

Picked Restore from Image, and it found the image backup on the E: drive. (Only the new drive mounted now.)

The image restore confirms that it's going to restore C: and D: but when I start it, the error below appears.

There is 3 times as much space in the new partitions as in the original ones.

I started a straight install to the new C: drive, and it ran OK until I stopped it, so the CD boot OS can see the drive and all the partitions   

Any idea why it's failing, or is there another way to move Win7 to a larger drive?

The full error message follows:

Window title:  "Re-image your computer"

"The System image restore failed.

Error details:  Windows did not find any disk which it can use for recreating volumes present in backup,  Offline disks, cluster shared disks or disks explicitly excluded by user will not be used by windows.  Ensure that disks are online and no disks are excluded by mistake.  (0x80042414)

SOLVED! 

From a post in another Microsoft forum, I tried Acronis True Image 2010 (30 day free trial) 

It made a perfect copy of my original drive, and even offered to let me partition it manually or partition proportionally to the old drive. 

So, I conclude that the Windows 7 Image backup DOES NOT WORK, at least for restoring after your hard drive dies and is replaced.

I'll have to spend another $40 for a workable backup solution, but at least it will be one that works.