Slight problem with restoring to system image!!

Hey guys, 

   Ive been having a Problem when trying to return my Dell Inspiron 1545 to its factory image! I have followed the step by step instructions, where on start up I hit F8, and selected repair your computer! Afterwards I have selected system image recovery and followed the instructions. 

   This is where I encounter the problem...

   A pop up saying "windows cannot find a system image on your computer. Attach the backup hard disk or insert the final dvd from a backup set and click retry. Alternatively, close this dialog for more options"

   When I close the dialog, the only option I can select is "select a system image." When I select next it brings me to another screen which has a table containing "Location, most recent system image, computer," but the table is blank. If I click the advanced tab a window pops up saying search for a system image on the network or install a driver! Neither of these options work.

   Has anyone any idea on how I can revert my laptop to factory state an alternative way? Or help me on what to do next?

ANY help would be greatly appreciated!!