Can Windows Backup and Restore restore to a different drive?

My main system disk died recently so I bought a replacement but it's a different disk with different size (it's greater). I booted from Windows DVD, selected repair, selected a restore point but the process fails with this:

"The Volume ID could not be found. (0x80070495)"

This sounds to me as if Windows Restore complained that the partition being restored to is different - which of course it is. Am I doomed or is there a way to "force" Windows Restore to work even though the physical disks changed?