To restore an image maunally to a vps you need to make sure you have created a vps to the same spec as the old one. The disksize must match the old disksize (very important). Once you have the vps created you can restore the image to the new logical volume:
dd if=/root/67-xen-vm125-1.bz | bunzip2 | dd of=/dev/VOLUME_GROUP/vmID_img
/dev/VOLUME_GROUP/vmID_img is an example of the path to the logical volume. You can find the logical volume by issuing the lvdisplay command if your not sure.
