We tried it this way and it works just fine.
Be sure to skip the following traps:

REGISTRY: To recover the registry after a complete restore of the C:
drive, you have to copy the registry files from c:\adsm.sys\... to
c:\winnt\system32\config\...
BOOT.INI: When installing the temporary NT on the same drive in an extra
partition, pay attention to the partition number, as it may change during
your restore procedure. Initially, when you have lots of empty space BEFORE
your recovery-partition, the value is 1. After creating new partition(s),
you have to increase the value.

Good luck,
regards, Michael