Why am I unable to Re-Image my back up in Windows7 x 64 ultimate

I have had baked up an entire image of my Windows7 x64 Ultimate after a clean install in Nov 2009 to an External HD.

When I boot to my computer with the system discs I created after the image back up to the external Hard drive, this takes me to the point of" Wondows is restoring your computer from the system image. 

This took few minutes and I could see

"Restoring disc C..

Then says cleaning up

Restore completed successfully

When it restarts A moving[dancing] windows 7 logo appears and soon a blue screen appears and computer shuts down and reboot.

This loop keep going,

I am able to go in safe mode There I could not get connected to internet.

Also my MSE is marked as not turned on. My attempt to turn on does not take effect.

What can I do?

Regartds