Here’s a simple 3-step way of replacing a HD in a Mac :
[ in this example a new HD is put into a Mac mini (version mid 2007) ]
1- clone the internal HD directly onto the new HD
These instructions assume you have another Intel-Mac and a USB-enclosure for a SATA-harddisk (that you will afterwards use to turn the old internal HD into an external one) available :
– put the new harddrive into the USB-enclosure
– connect the USB-cable to your other Intel-Mac
– connect the Mac mini to the Intel-Mac using a FireWire-cable
– (temporarily, just during startup) connect a USB-keyboard to your Mac mini
– startup the Mac mini while pressing the T-key on the keyboard (“Target Mode”)
– both the Mac mini and the USB-connected new HD will now show up in your Finder (on the Intel-Mac)
– open Disk Utility
– click on the Erase-tab
– select the USB-connected HD list on the left, and erase it in MacOS Extended (Journaled) format
[ BEWARE : do NOT format your HD in MacOS Extended (“Case-sensitive” Journaled) mode ! As that will prevent some applications to run ! e.g. Adobe Photoshop 10 Editor ]
– click on the Restore-tab
– from the list on the left drag the partition of your Mac mini onto the “Source”-field
– then drag the new partition from your new HD onto the “Destination”-field
– click the Restore-button, and wait
2- replace the HD
– open the instructions on how to replace the HD from the iFixit-website (or print them out) and read them
http://www.ifixit.com/Guide/Installing-Mac-mini-Model-A1176-Hard-Drive/1108/1
– get the new HD out of the USB-enclosure
– now gently open the Mac mini enclosure
– blow the dust of the interior using a compressed air blower [ do NOT use a hair dryer ! ] or using a vacuum cleaner with a piece of thin cloth (e.g. a napkin) tightly fit to the suction tube (to prevent anything from actually being sucked in)
– replace the HD (make sure the connectors are clean and fit thight)
– while you’re at it, you might also check the AirPort-card connector
– and finish up (all using the iFixit-instructions)
3- test the new HD
– restart
Note : if you would like an alternative procedure for replacing a hard drive in a Mac, look here :
https://macmanusnl.wordpress.com/2012/06/12/installing-a-new-hard-drive-2/
MacManus.nl 
Has this been tested and worked? I have read on forums that people who have tried this approach restored their hd with time machine only to find the boot partition was made journaled again.
I had a hd failure and bought a new ssd. Unfortunately I formatted it to case sensitive when I reinstalled lion and my google searches have lead me here. I will try your solution out and I hope it works!
@Nick Colbert :
Yes – the 3-step approach lined out is exactly the way I did this myself, and I can honestly say : it works !
😉
So… I have no doubt that it will work for you too (if you follow the directions exactly)…
And I’m very interested to hear from you if you’ve succeeded (or not…)
Good Luck & enjoy !