Can you get it to restart off-line in a stable condition? What SP level is the original restored image?
Online or offline it doesn't make any difference. If the machine is rebuilt from the image and left alone it works perfectly but once it is actually powered down (OFF) the next start and it is corrupted again.
If it is up and running the normal restart/reboots are all ok (ie after windoze updates etc).
As standard it's XP home and SP2.
cheers gp