Did you try to overwrite your currently running root??? That will typically cause a massive disaster. In general, you typically need to boot off another disk to rebuild root. And if you're using tar, this will imply that the tar archive needs to have been created with relative pathnames.
Actually I would never attempt to recover root from a tar archive. I would reload the OS and then use the tar arcgive to grab a few files like /etc/paaswd and so on.
I can't get more specific since I don't use SCO. I hope some SCO folks will jump in here with some more help.