The system restore is disabled by a group policy. You need to remove that policy, which is in the registry. 
Is the user account have admin rights? And is it logging into a domain?
Shane
Yes, I have admin rights.
Yes, this station is on a domain.
No, this "policy" is no longer observed for each new station in this office - I have the only one.
We ordered 4 matching computers to which this one is the lone survivor. I know the other 2 did
not have this policy in place and wonder if a virus did this, to this computer(?) prior to my use.
The fourth one had the hard drive wiped with a new XP OS and has since died (again).
Yes, I have full access to the registry.

Yes, everyone except this station and another is on w7.
Can you help?