I just double checked with ghost explorer ... seems all you need to do to recover some of the files onto a system that already has an OS is to right click and select 'restore'. Then it'll give the option to restore to a location of your choice. BTW, the copy line 'COPY /V C:\IMAGE.GHO D:\IMAGE.GHO ' doesn't seem right ... the 'IMAGE.GHO' part at the end of 'D:\IMAGE.GHO' ... but that shouldn't be needed anyways.
I had copied ghost files in Windows before and they had gotten corrupted so I'll try that again in DOS or possibly even ghost.
A precaution to possibly take when doing a restore on a particular system for the first time is to try it on another drive first. I have run into problems when the HD was too small for the image.
Good luck with setting up the shore palace and recovering these files.