One more time Bill:
I have been working on this more, and I have discovered that there is a Microsoft Utility that can access a restore partition and do a factory reset.
The utility is imagex.exe.
It is contained in Windows6.1-KB2525084-v2-x86.cab and it is available for download at http://thehotfixshare.net/board/index.php?showtopic=15932
It does not erase the original partition and data. Instead, it reinstalls Windows but keeps what ever else is already on the partition. It creates a new Windows directory and stores the previous Windows directory in a file called Windows.old.
On my first attempt, I created a functioning, but cluttered and confusing Vista partition with bits of the old and new installations.
My goal was to create a factory reset with none of the old files or data. So deleted the primary windows partition and replaced it with a empty primary partition.
I started the computer with a windows 7 installation DVD. I do not have any Vista installations DVDs. The Win7 DVD worked. From there I went to "Repair your computer" and then to "System Recovery Options" and selected "command prompt".
The syntax is like this:
e:\imagex /apply d:\dell\image\factory.wim 1 c:\
Where c:\ is the target partition, d:\ is the location of the restore partition, e:\ is the location of imagex.
I created a small "e" partition on the disc drive to keep imagex separate from the restore and installation partitions. Probably not necessary. Afterwords, I erased it.
Restore took about 15 minutes.
At first the restored partition would not boot. I got a NTLDR missing error.
I again started the computer with the Windows 7 installation DVD and back to "System Recovery Options" and selected "Startup Repair". It found the problem and fixed it. After that I was able to boot normally. I now had a factory Vista partition.
Here a page that describes it in more detail.
http://en.community.dell.com/support-forums/software-os/f/3524/t/19494817
It worked with a Dell restore partition. I do not know if it works with restore partitions on different brands of computer