new hard drive

Hey guys-

My MacBook's HD crapped out but I thankfully had a backup via TimeMachine's periodic backups.

So I have bought a new HD and about to install it but Im wondering if I should use the Snow Leopard start up disk or if I can use the Lion disk I made when I installed it on my other machines.

So to clarify I would either:
1.install new hard drive
2.use SL start up disk
3.use Lion disk to update to Lion
4.restore from time machine backup on external HD

or

1.install new hard drive
2.use lion disk
3.restore from time machine backup on external HD

Option #2.

Gets you a clean install too. Don't use Time Machine restore though, use Migration Assistant.

well all I meant was that it was backed up through Time Machine.

Is there a way I can do a full system restore AFTER I put the OS on the new hard drive?
Like if I do not have the external hard drive plugged in during my boot into the SL or Lion DVD?

It is the only copy/backup of my computer I have and I dont want to risk anything.