The first step in restoring a backup is to obtain possession of the backup. If you have a locally stored copy, you can use it, otherwise you will need to retrieve the backup from it's storage location.
To restore an H2OS created backup, H2OS cannot be running, as Windows will not permit files in use to be replaced.
For this reason, H2OS comes with a utility program, c:\h2os\h2os_recover.exe that can be launched from Windows Explorer by finding it (see below) and double-clicking it's file name.

You can also launch H2OS_RECOVER from a Windows command window by entering this command: c:\h2os\h2os_recover
When the H2OS Recovery Console is launched, it's screen will look like this:

When you click the "Restore a full H2OS created backup" command, the following screens will appear:

Click YES

Click YES and then use the navigator to point to the backup to be restored.
In this example, backups are stored in a folder named BACKUPS, but you can designate any folder you wish to store backups (this option is set in setup->options->backups).

Select the backup to be restored and click OK
Note the naming convention for H2OS created full backups includes the date of the backup, 1/25/09 for the 2 backups shown here, plus numbers that make the backup name unique.

Click YES if correct.
If you click NO you will be prompted to point to the proper H2OS installation/product folder
When you click YES, a message like this will appear:

Click YES and allow time for the restore to complete
This screen will appear when the restore operation completes:

Click OK
Close the Recovery Console screen
Restart H2OS
CAUTION: Not sorted out yet. Contact H2OS customer support before using this procedure
To mention that I had to deal with a problem you may see.
To install a customer's backup into my test H2OS system, I simply put his backup in the C:\H2OS folder and unzipped it, letting it replace files and using folder names (2 options).
I did discover one problem with this procedure that I haven't sorted out yet. It seems this procedure is removing (deleting) some EXE files, including VFPCOMPRESSION.FLL and FOXHHELP files from the test installation. It almost seems like the UNZIP did it, but it doesn't have that option and haven't seen it behave that way before - it basically adds or replaces files, but doesn't delete any in the target folder. But - I've seen this happen and had to fix it.
If you install a backup, use this procedure, but watch out for this problem. Workaround is to copy the above files from C:\VLS into C:\H2OS (and let me know it happened).