[HOW TO] - Restore an entire volume that was erased

From this article --> Restoring files from a Time Capsule backup

To restore an entire volume that was erased

1. Start from the Mac OS X Leopard installation DVD.
   
2. Choose Restore System from Time Machine from the Utilities menu.
   
3. If you are connected to your Time Capsule via an Ethernet cable instead of wirelessly, skip to step 8.
   
4. Under "Select a Backup Volume" click the "Join..." button to join your wireless (Time Capsule) network.
   
5. In the next sheet, enter your network name or click the "Show Networks" button to see a list of detected networks.
   
6. Choose your wireless network and type the password.
   
7. Click "Join".
   
8. Time Capsule appears as a Backup Volume. Select it, then click Continue to proceed.
   
9. Enter the password for your Time Capsule if prompted.
   
10. Click Connect to proceed.
    
11. Restore your Time Machine backup to the erased volume following the onscreen instructions.
    

Restoring an existing Time Capsule backup to a new Mac

1. When your new Mac starts up for the first time, you are asked if you want to transfer information from another Mac or volume (in the "Do You Already Own a Mac?" window).
   
2. Click "From a Time Machine backup or other disk."
   
3. Click Continue.
   
4. If you are connected to your Time Capsule via an Ethernet cable instead of wirelessly, skip to step 9.
   
5. Under "Select a Backup Volume" click the "Join..." button to join your wireless (Time Capsule) network.
   
6. In the next sheet, enter your network name or click the "Show Networks" button to see a list of detected networks.
   
7. Click your wireless network and type the password.
   
8. Click "Join".
   
9. Time Capsule appears as a Backup Volume. Select it, then click Continue to proceed.
   
10. Enter the password for your Time Capsule.
    
11. Click Connect to proceed.
    
12. Your Mac will then check the Time Machine backup for a period of time.
    
13. The "Transfer Your Information" window appears. Select the desired accounts, network and other settings, Applications folder, Files and folders that you want to restore.
    
14. Click Transfer. You can monitor progress of the transfer in the Transferring Information window.