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Reznor encountered a problem in the writing process immediately: he wasn't sure if he could still write music. So he set goals for himself early on: two songs written and demoed every ten days. It was a back-to-basics approach to help him decide if he could write music while clean and sober. The demo process was very stripped-down, consisting of a drum machine, a piano, a microphone, and a computer. From those demos, Reznor would determine what worked and what didn't. He found that the piano element in the demos provided an interesting contrast to the drums, and it would remain in many of the songs.
Initially, the plan was to create a concept album called ''Bleedthrough.'' As the recording process progressed, the concept was scrapped and became ''[[With Teeth (halo)|With Teeth]],'' a more song-oriented rock album. It was recorded at Reznor's New Orleans studio, and it would be the last music to be recorded there. Reznor has since relocated to Los Angeles, partly to be closer to those in the music industry, but also as a way to avoid a temptation that could send him into another relapse. During the production process, Reznor invited [[Dave Grohl]] to play drums on some of the songs, at Dillon's suggestion. Recording was delayed for a few days that September when the city was evacuated due to Hurricane Ivan, which took a more easterly track at the last minute. Production ended in late 2004 , and post-production began in early 2005.
March 2005 was the beginning of the press junket for ''With Teeth.'' Reznor talked about his addictions and sobriety, his reaction to Cash's cover of "Hurt," his impending 40th birthday, and the upcoming tour cycle. A new touring line-up had been assembled , and Reznor was confident in their ablilities. Five concerts had been scheduled with small venue dates throughout April and May of that year. The smaller venues were chosen because Reznor wasn't yet sure if he could still play to crowds as large as in the past. The tour sold out immediately, a sign that NIN's comeback was sorely needed.
''With Teeth'' was released on May 3, 2005, and debuted at the top of the ''Billboard'' charts. In part its success could be credited to the nearly six years since ''The Fragile'' and the fans' dedication. By the end of the year it would be platinum.
Despite the album's success, Reznor still had to deal with the lawsuit against his former manager. Since he had to be in New York City to testify on May 16 and 17 (May 17, 2005, was Reznor's 40th birthday), he scheduled some tour dates there so that it wasn't all pure business. Reznor testified that he had lost trust in Malm, and that he should have read the contracts more closely. He didn't deny that his addictions may have played a role in the problems, but he still claimed that Malm was the one who was holding back on assets. At the end of the month, a jury ruled that Reznor was entitled to all assets under his name plus interest, including the Nine Inch Nails brand. The winnings have been estimated to be as high as US$6 million with interest factored in. Malm could still appeal the ruling.
After the success of the club tour, Nine Inch Nails travelled the world, playing at festivals and large venues. Reznor found that he could write music sober and began working on a follow-up to ''With Teeth,'' setting up makeshift studios on his tour bus, in his dressing room, and in his hotel room. It was one way that he remained sober while on the road, and was one of many safety nets he established to help himself stay sober. No longer interested in the backstage partying, he now found enjoyment in making music, which he once saw as a chore or job.
Hurricane Katrina struck New Orleans on August 28, 2005. Reznor was at first concerned about his studio there, but initially it seemed like the city was spared from the storm. The next day, when the city's levee and pump system failed, Reznor was devastated. In the following days, his sadness became anger at the lack of response to the disaster, as he became even more vocal about his disdain with the US government. He was invited to perform on ReactNOW!, a telethon organized by Viacom with proceeds going to the American Red Cross to help those affected by the storm. Reznor performed "Hurt" with Cash's lyrical change, and premiered a new song, "[[Non-Entity]]," an internet-exclusive performance that would later be made into an MP3 file available for purchase. Proceeds from the MP3 went to the American Red Cross. Reznor decided that guitars used on the upcoming concerts would be sold on eBay with proceeds going to the Red Cross. It was one of many nonprofits that Reznor would go on to publicly support. In January 2006, he joined People for the Ethical Treatment of Animals' (PETA's) campaign against the Chinese fur industry, narrating a video documenting the abuse of cats and dogs used in that nation's fur trade. In February 2006 Reznor revealed that he had adopted a retired racing greyhound, emphasizing animal adoption and rescue.
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