Full Restore from Time Machine Backup Fails

Hello all,
I'm having some serious issues doing a full restore from a time machine backup located on a time capsule. I was connected via ethernet to the time capsule for the duration of the restore. When the restore finished i choose restart. The spinning icon that appears below the apple logo when you boot your computer appeared on screen, I assumed it indicated that the computer was restarting. I waited and after five minutes of the spinning circle I force shutdown. When I restarted the apple logo appeared and the spinning icon did for about a second and then the computer suddenly turned off. I tried starting in safe mode but the same behavior occurred. When I did a verbose-safe mode boot the message "CPU halted" appeared on the screen just before the computer shut down.
I decided to reinstall the OS and migrate all my files back. I did an erase and install. When the startup assistant appeared, I choose to migrate my files from a time machine backup. When I was asked what I'd like to restore I checked everything off but the continue button was grayed out. I noticed that under size, the message "Calculating" was displayed. The system was taking a very long time to calculate the size so I clicked around a bit. Somehow, I managed to crash the startup assistant 3 times doing this, resulting in the "Welcome to Mac OSX" video to play and the startup assistant to appear again.
Currently I am doing another erase and install and am going to try migrating the data again, this time waiting longer for the "Calculating" step to finish. If this doesn't work are there any suggestions for how to migrate my data back? Also, if this helps the time capsule is the older model, 500 GB, without the dual band capability. There are two backups on the time capsule.
After this episode I don't particularly trust time machine to backup my data and allow me to restore it when I need to. Are there any suggestions for a good external drive to use with Super Duper? I have a 320 GB internal and am looking for something portable, running of USB or Firewire 400, and preferably drawing power from the cable and not needing an additional A/C adapter.

dhatch387 wrote:
I'm migrating the backup over from the time capsule now. Unfortunatally, it seems to have frozen. I checked this morning and I was told there was less than a minute remaining in the migration. Now, 9 hours later, I am still told there is less thane a minute remaining?
No, after that long, it isn't going to complete, so cancel it.
Then see if it will boot. If so, see how much of your data it managed to copy. You should be able to use Time Machine to recover the remainder, in the usual fashion.
If it won't boot, your best bet may be to do an Erase and Install, then load and install the "combo" update to get OSX updated, then use Migration Assistant (in your Applications/Utilities folder) to recover your users, etc.
Would moving the data from the time capsule to an USB/FireWire external drive help?
No. The backups on a TC are stored differently.
Also, could all these problems I'm having be caused by an hardware issue on either my mac or the time capsule?
Possible. Why did you do the restore?
And Baltwo's statement about TM not being "designed for backups" isn't true. While some say TM may not be as reliable as CCC (Baltwo is their discussion moderator), it usually will restore your entire system to the exact state it was in at the time of the backup you select, even if that's a previous version of the OS. But of course if there are hardware issues, or corrupt data was saved, all bets are off.

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