Restoring Time Machine to New SSD

So Here's what I'm attempting to do;
I bought a data doubler off of OWC and and have removed my superdrive and installed the 120 GB SSD with the bracket. I have installed OSX 6.0.1, upgraded to 6.8 and then downloaded and successfully installed OSX 7.2 (lion). I am wanting to move my OS, boot and start up files, applications and Library to the SSD to improve overall performance. After I plan to wipe my 500 GB HDD that is in the main bay (to get the OS off) and then restore it with a time Machine back up I have of all my other files.

Now for my problem;
I backed all of the above files onto an External HDD using time machine, and did the start up + Cmd+R (not sure what that's called) so that I could restore that time machine back up to my SSD. I can select the drive and back up I want but it says there is no room on the SSD. But I have checked multiple times and even removed some of the larger files to get it well below the 120 GB SSD (got it down to 60-80 GB in fact) and it still says there is no room. I can boot up fine with the SSD and it runs perfectly. but I can't restore Time machine.
I tried Migration assistant after having booted up to the SSD and that wouldn't even recognize the drive either.

SO is there another way to do this or correct my problem? Any help would be greatly appreciated.

(See my Sig for what Mac I have)

I've looked around a bit more and I've found This link. I think I might try and attempt this and see what happens. Is there anything wrong with just dragging all of my main files right onto the ssd and start fresh as it were instead of doing a time machine restore? And how does that link help what I'm trying to do? I think it follows along this elides but I'm not sure.