Hello,
Yes, the BESR 7.0 recovery environment does support retargeting images created with BESR 6.52. The server that is rebooting after the restore is likely experiencing a blue screen. Usually, blue screen errors after a restore anyware operation indicate a problem with the mass storage controller driver.
Were any errors reported during the restore process? If not, then that would indicate that the BESR 7.0 recovery environment thinks it found a valid mass storage controller driver for the new system.
You may want to consider opening a support ticket.