Latest TM Backup won't fit on new SSD

Hi all,

I recently got a 250gb SSD (about 234gb which can be used) and cut down the used space on my 320gb HDD to be 166gb. I did a recent backup with TM and checked the files on that backup to make sure it wasn't over 234gb. It added up to be 166gb.

So now the problem. I boot to Mountain Lion w/ a flash drive w/ the new SSD in my macbook. I tell the computer to restore from TM, specifically selecting the most recent backup and tell it to restore to my SSD, but it tells me the backup is too large for the SSD. How is this possible? I'm so confused.