I didn't experience this problem when I ran a test-scenario of re-creating
a 'lost' harddisk.   But then I went so far as to re-partition and reformat
the harddisk before running the restore from a floppy boot.

The only problem I had was to not know about how the SYSTEM file has to
be 'blessed' (no kidding!!) before the reconstituted system would boot.

After that everything was just peachy.  Shame DOS and OS/2 don't have
 'blessing' capability.
                .. joe.f.
P.S.  You bless a Mac SYSTEM file by using the Finder to move it out of and
then back into the SYSTEM Folder.   ADSM doesn't know that trick.