10.7 Image won’t restore – Lion

So I am new to this nifty little program. I followed the instructions here - http://www.coolestguyplanet.net/create-an-image-of-os-x-lion-10-7-using-instadmg/ - and had no issues. My image was created just fine. I put the image on a USB drive (8 gig) and booted from my install DVD to get to the disk utility. I restore the image from my USB drive to my wiped HD. Reboot, nothing. The HD image doesn't exist. It's as if nothing was written. Tried this several times, even used the Lion recovery partition/disk utility. Same thing. What's going on? Am I missing something here? I saw another thread about this issue and no answer/response was given. Any help is appreciated.