Here are some helpful links:
http://www.makeuseof.com/tag/3-check-system-restore-working/
http://www.tweaking.com/content/page/set_windows_services_to_default_startup.html (Sets all Windows Services to default)
https://sites.google.com/a/obxcompguy.com/foolish-it/d7/online-manual/usage/repair-tab (D7 Repair Windows guide)
Download D7
Make sure you read everything before using D7 is is a very powerful tool and can cause other problems. Only select the Repair System Restore option.
Before you attempt any manual fixes, try booting your System into Windows Safe Mode and verify that System Restore is not working.
If it is working in Windows Safe Mode then you have something interning with it causing the errors. So don't do any repairs try to find out what is causing the problems.
Enjoy!!
