Have similar problem....but in reverse!
Vista Home Premium is running fine BUT think I have to reinstal Windows XP as it appears that Vista restore will not accept xp backed up files. Any help would be appreciated

If you want to install XP as a dual boot here is a guide:

http://apcmag.com/5485/dualbooting_vista_and_xp

Otherwise can you describe in more detail what you mean by:

"Vista restore will not accept xp backed up files"?