**************A few years ago I had this same problem and asked the same 
question and got this answer which worked perfectly when no other 
suggestion worked at all:
------------------------------------
How Do I Re-Install System Restore

System restore is an excellent alternative when applications go awry. 
However, what happens when System Restore itself decides to play up. You 
could spend ages re-installing Windows XP, but before doing such a drastic 
thing, you could try re-installing System Restore. The procedure is as follows:

PLEASE NOTE

You may be asked for the Windows XP CD. if you haven't got a retail copy of 
the XP CD, point your browser to the i386 folder, locate the INF folder and 
see if you can install System restore form there.

1/ Open Windows Explorer

2/ on the Main toolbar click Tools

3/ From the drop down menu click Folder Options

4/ The folder Options Properties window will now open

5/ Click the View tab

6/ In the advanced Settings list scroll down to the Hidden Files and 
Folders section

7/ Click on the radio button next to the Show Hidden Files and Folders option

8/ Click OK to close the Folder Options Properties window

9/ In the left hand pane of windows explorer click the + sign next to My 
Computer

10/ This now expands the drive list

11/ Click the + sign next to the C: drive to expand the folder list

12/ From the folder list navigate to the Windows folder and click the + 
sign next to this to expand the folder list

13/ Scroll down and click on the INF folder

14/ A list of INF files will appear in the right hand pane of Windows explorer

15/ Look for a file called SR.INF

16/ Once you have located SR.INF Right Click on the folder

17/ From the drop down menu click on Install

18/ System restore should now re-install

Now open Windows explorer, click on My Computer and then click on your C: 
drive. From the folder list navigate to the Windows Folder and then scroll 
down to the INF folder. Click on this to open the INF folder.
Now look for SR.INF file. Right click on this and then, from the drop down 
menu, click Install.
========================================
**********Good luck..............Elliott
=================================
At 11:42 PM 9/22/2006 -0500, you wrote:
>A friend of mine, who is using XP Home, is unable to get System Restore to
>work.
>
>He says that he has used it frequently in the past, but this time when he
>clicks on the restoration point, it starts up and then tells him that it is
>unable to restore.
>
>If anyone has any suggestions for him, I will pass them on.
>
>Dean Kukral
>
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