Restore failed again.

Here is my procedure

I checked services:
Task Scheduler was running as automatic
Windows Backup (System Restore Service is XP only) was running as manual & I changed it to automatic
Where’s the System Restore service gone in my Vista Home Premium ? « A Vista enthusiast blog

I cleared all restore points using system protection as you described.

I used Backup & Restore Center to check restore points: there were none.

I used Tuneup Utilities Disk Space Manager to double check restore points: there were none.

I created a restore point named test.

Prompt said restore point successfully created.

I created a folder on desktop named test. (this should be gone after restore)

I used Backup & Restore Center to check restore points: point named test is in display.

I used Tuneup Utilities Disk Space Manager to double check restore points: there were none.

I started restore restore process cycled computer restarted.

Restore failed. Test folder was still on desktop.

I used Tuneup Utilities Disk Space Manager to double check restore points: 79.35 MB

I am running NIS 2009 - could this cause problem?