error message after restoring files from time machine

My imac5 crashed a couple weeks ago. Yesterday, I replaced the hard drive and reinstalled MAC OS X leopard. Everything looked great so I set up my time machine to restore files.
This morning I received the message everything is restored, reboot the computer. After rebooting the gray screen came up, immediately a darker gray scrolled down with the message "you need to restart your computer. Hold down the power button..." This is been repeating every time I reboot the computer.

This is a kernel panic.
This could be a hardware or software problem.
If everything was running fine before you restored from your time machine backup, this leads me to believe that there is something corrupt or incompatible on your time machine backup.
Therefore, what I would be doing is reinstalling Leopard, testing it for a little while until you are certain that everything actually is running fine, and then just move over your documents, music, movies, and pictures, and reinstall any third party applications from install discs, or download direct from vendors.