jraju,
I have updated IE to version 10, and have tried to install 11 through windows update and manually but it stops almost at the end of installation and gives error code: 9C59.
As for AV causing problems with restore points I can't say or sure we have also another laptop with win8.1 and avast running but restore points works fine on that, but when searching google there are many threads concerning AVs causing problems with restore points.
I have ran several programs to delete Rootkits, malwares, etc but that hasn't helped me either, this laptop was fresh installed two months ago and I remember in the beginning restore points worked, as I had earlier had the same problem before a fresh install.
Now I have now installed Avira on this laptop but haven't noticed any difference so far. I don't get any bsod or black screen or any other failures with this laptop, but I might once again reinstall win7 just to test the restore points and see if I can find the source to the missing restore points.