Want to restore my computer, but only with a few files; not a complete Time Machine restore

My computer's messing up and I decided I might as well start fresh, but I want some files and folders back obviously.

I take it, I simply need to:

1. Turn it off
2. Turn it on and put the install disc into it, meanwhile holding the C key
3. Install Snow Leopard
4. Once it's installed, select the external drive I'm using for backups
5. Open Time Machine, right click on files/folders I want to restore.

What will and won't work? Because, it seems to me you can't redownload movies from iTunes. What about the settings? Is there some sort of .yml or something somewhere that holds them?

And, something I'm dreading, how will I get my programs back? Will I need to reenter the product key? I have Adobe Production Premium CS5.5, should I deactivate it then reenter the product key? What about the plugins for After Effects? Also I have MPEG Streamclip, and when I bought it, I don't remember having to enter any product key.

And my copy of Office for Mac 2011, I bought the 2008 box and it came with instructions of how you're eligible to get 2011 once it's available, when I went to install Office for Mac on my MBA, the offer was no longer available.

Thanks in advance.