If you did the restore while booted into Mt Lion, IE you were using the computer, then it placed that restore in a folder called Macintosh HD in the ROOT (or maybe in your username folder) of the Macintosh HD.
The proper way to restore is from booting the system from the Recovery HD partition and select Restore from TM backup.
Unfortunately I did restore while booted into Mt Lion. I am able to log in. What is the best way for me to correct my mistake given where I am and get all my folders and applications properly working?
My restored files are not in the username folder of the Macintosh HD therefore must be in the hidden ROOT.
Use this command in terminal to Show alll files.
defaults write com.apple.Finder AppleShowAllFiles YES
Hit the enter key once entered into the terminal window.
Delete that whole folder to regain the space.
You might want to download EasyFind as it will find every file or folder you are searching for. The Built in Spotlight won't.
You may also want to download Omni Disk Sweeper which will list all folders and give you the space they are using on the drive.
It is covered in my first reply. Boot to the Recovery HD, Command+r keys at startup, Select Restore from TM backup. You may have to first erase the Macintosh HD partition using Disk Utility from that same Recovery HD boot.
Thank you for the help. Is there a simpler way for me just to erase the entire 1TB disk and start over versus finding every file and folder to delete?
I had to take my imac in because 1TB hard drive was recalled. Now I have a new hard drive and just want to recover/restore the entire 700GB of files I had that are backed up on Time Machine.
Looking for the quickest way to start over
Yes there is. Boot to the Recovery HD, Command+r key at startup and Erase the Macintosh HD partition, you do that in Disk Utility. Then once that is done exit out of disk Utility and select Restore from TM backup. Hopefully it will see your time capsule. It would be best to have the system Wired to either your main router or the time capsule instead of using Wifi.