I have a Toshiba Satellite U300 which only has a "recovery disk" (Windows Vista Home Premium 32) instead of a normal windows disk. Is there anyway I can use vlite with this? I have tried but just get an error "cannot find the expected files".
I have looked through previous threads but the only similar one suggested looking for folders called Source or a large .WIM file. Found those but selecting those folders still gives the same error.

Any suggestions?

I will take that as a "no"

you can't use vLite with such a DVD.

You might be able to get it to work, check out this guide for ideas on how to get your recovery DVD recognized by vLite.