Problem restoring a backup with Norton Ghost 10

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I want to restore my Windows installation, currently in a 250Gb drive, into a 60Gb drive.This is what I did:
I have my current WinXP SP2 OS with Norton Ghost 10 installed in a 250Gb drive. Windows is currently occupying 35Gb space of the 250Gb total.I also have a 200Gb 2nd drive installed. This is what I did:
1) I backed up my main drive with Norton Ghost to the 2nd drive (it successfully created a restore point).
2) I shut down my PC, removed my main drive and replaced it with a 60Gb drive.
3) I succesfully rebooted my system with the Norton Ghost bootable recovery CD placed in the CD drive.
4) I indicated the program to recover my system choosing the recovery point in the 2nd drive as source and the 60Gb drive as target.
5) When I clicked "NEXT" it didn't allow me to recover, it gave an error message indicating that the target drive not valid.
QUESTION: Could it be that since the original backup was made from a 250Gb drive, the target drive being 60Gb (less than 250Gb) then it's not allowed? Yet, the backup is only 35Gb (the original spaces occupied by the Windows installation). Thanks for any suggested solution.
 
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