We don't touch the recovery partition, so if you restore the 'visible' volume it will still be there. We never repartition at all: we copy from one partition (source) to another (destination).
This is one of the reasons we're providing "initial" Lion compatibility. There are issues with the Recovery Partition and FileVault that aren't entirely clear yet. We're still working through the right way to handle these rather extensive changes.
The file data on the drive, though, is fine...
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--Dave Nanian
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