PS: Using MS disk image creation system, you cannot selectively restore files, it essentially takes a snapshot of your whole drive, and is supposed to restore that snapshot.
Responding to your PS first: DriveImageXML, which I use, does allow you to selective restore files.
Question: You have a complete image of your C: drive (which contains windows XX, and your programs), saved on a removable drive or DVD(s), your C: drive fails (mechanical, malware etc.). You replace your C: drive with an essentially "blank" new one. What are the mechanics of utilizing your image? It seems if you used Windows imaging creation system, you have to be running windows (which you don't have, since it is on the failed drive); unless you made bootable emergency media (or have your original installation disk) you can't do anything.
My order of priority:
1. Reinstall Windows
2. Reinstall programs such as Carbonite, PogoPlug Backup and DriveImage XML. (Again, I don't use DriveImageXML to create a disk image, so I need DriveImageXML to reinstall these files.)
3. Start the process of restoring files using Carbonite (slow) while also begin to transfer documents, pictures, music and videos onto the computer from another external HD or NAS (probably using a backup other than DriveImageXML, which can be slow).
4. Reinstall other programs.
5. Use DriveImageXML to recover files that weren't backed up using Carbonite, etc.