As previously mentioned once you have attempted a recovery in the way you did, the 'factory' diagnostic partition is blown away.
Return to the disks you created.(do not discard whatever else you may do)
Insert the RR disk (the first disk of the set). Then follow the instuctions to restore the other disks you will be asked to load 'final C' and so forth. Make sure that you select the internal DVD as the source. This maybe you require you to scroll down in the source selection 'box' to select. DO NOT USE THE RESTORE TO FACTORY option again as you will end up in a loop, you must reboot NOW from the first RR disk you created, which will allow you to select the option to restore the disks you created.
Once the system is restored using this method you will have a new 'stub' diagnostic partition of about 1Gb replacing the original 5gb diagnostic partition, (perhaps that is why IBM decided to blow it away) However it will NOT contain the image files with the ability the ability to restore to factory state, or to create diagnostic diskettes and run diagnostic routines. Restoring the disks you created takes some time (hours). DO NOT think it has 'screwed up' if nothing seems to be happening. watch the HD drive lamp for the odd flicker of activity. I know this works as have done it to many times ! . Seems it is the only way to recreate the MBR following a 'disaster. (The IBM MBR recovery program does not work in these circumstances).