If you have made a backup using Windows 7 Backup option where the backup is a large dump of VHD file and unable to recover the back up please follow the methods explained below. I've collected a handful of handy links which should serve your purpose:
Case #1: How to restore VHD file backup?
The reason why you’ve a VHD file is because you’ve created a system image backup. A system image includes Windows and your system settings, programs, and files. You can use a system image to restore the contents of your computer if your hard drive or computer ever stops working. When you restore your computer from a system image, it is a complete restoration; you can't choose individual items to restore, and all of your current programs, system settings, and files are replaced.
You wouldn’t be able to restore VHD files using backup and restore center. You can mount the image by following the steps below.
Method 1: Steps to mount VHD files in Windows 7
a. Open Start Menu, right-click on Computer and click Manage.
b. Click on Disk Management.
c. Click Action -> Attach VHD and specify the external hard disk location on your computer.
Check out the section in the link below about how to extract files from a system image (advanced)
Method 2: How to restore your computer from a system image backup
For more information about system image backup, you can visit the link below
Learn more about system image backup
Backup and restore: frequently asked questions
Hope this information is helpful.
Mouneshwar R – Microsoft Support
CASE #2: Restore your computer from a system image backup: http://bit.ly/127HwPd
CASE #3: Restoring Windows 7 VHD Backup Files with Acronis True Image Home: http://kb.acronis.com/content/3648