Ghost 14 restoring duplicate partitions

Working with an XP Pro SP3 machine and Ghost 14.

 

We installed Ghost about a month ago and starting doing Ghost incremental backups to an external drive.

 

Our timing was great as a few days ago the drive (60 G) failed.

 

We replaced the drive with a 250 G drive.

 

We are having two issues:

 

1) when restoring the image we are selecting the "resize"  option... but the c: partition is only ~120 G, not 250 .  Anyone know why?

 

 2) after the restore is done, we are seeing the  "C" partition (~120 G) and an "E" partition ~60 G like the original drive.

 

The contents are identical.  We used My Computer | Properties | Manage to delete the E partition... but when we tried to reboot got the error message "Windows could not start because of a hardware disk configuration problem.  Could not read from System Disk.

 

Apparently, the E partition was set to be the bootable one.

 

NOTE: We had selected resize partition, make disk bootable, restore disk signature and and restore MBR when restoring.

 

What are we missing here?  Thanks for any suggestions.