To restore an image manually to a vps you need to make sure you have created a vps with the same spec as the old one.
The disksize must match the old disksize. 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 also find the logical volume by using the command :