I have restored my iMac from backup and it will not boot

I restored my iMac from an external drive using time machine and when it restarts, it sit with the grey screen and petals rotating.
The restore was used as I had tried to share be two iTunes libararies and manged to loose the content links within iTunes, so thought the restore would take me back, pre user error.
I have tried. 3 different restore points and checked the disk, using disk utility, that was ok. Repaired the permissions ok  on the disk and still the machine will not reboot.
It goes through the restore ok then just sits on the grey screen after reboot.
Any ideas or have I really screwed it up?

Reinstalled OSX lion overnight and recovered ok, most of the files were intact.
Would not let me use the migration tool from tm as it would nor show the bak up drive, even though it is backing up to it.  Still miffed why the restore would not work, as the mac came with lion installed from new and I had backed up from day 1.
I do not have much faith in the tm backup.  I just hope that if there is a next time, that I can retrieve my information.
I bought a mac thinking I would not be having theses issues, I hope this is nt a sign of things to come!
Thanks for your support and confirming I was doing the right things to try and recover my situation.

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