Nand backup is only to revert back to a rom. Its an "image" of your phone at the time you did the nand. You can't extract items from it to use on a new rom.
One comment to add to this, which reinforces how useful it is to have Nand backups.
If you have already moved on to a different ROM, and then sometime later find out that there
is a Market app (or built-in Android functionality) to back something up to the SD card (contacts, bookmarks, SMS messages, CyanogenMod settings, emails, User dictionary, HTC_ime_mod keyboard settings, Apps, et cetera), you can always
- Make a Nand backup of your current ROM
- Restore the older ROM & install the app & perform the backup to SD
- Restore your (newer) ROM & install the app & perform the restore from SD.
Nandroid backup is the bomb. To some extent, you can go home again.
eu1
PS. I should also mention that from time to time (usually if I have trouble with the Market), I'll also pull the same stunt to go back to a previous ROM in order to extract an app .apk file to the SD card (using a root-aware file manager). It could be done offline using "unyaffs" and the data.img file from the Nandroid backup, but that requires using a PC.