Have you tried this?

Checkpoints that you create after September 8, 2001 do not restore
your computer
http://support.microsoft.com/?id=kb;en-us;290700

....Alan

--
Alan Edwards, MS MVP W95/98 Systems
http://dts-l.org/index.html

In microsoft.public.windowsme.general, "Peter David"
wrote:

There are no restore points that I can roll back to. I have looked through all the ME Help files to find out how to create a restore point, and followed all the suggestions. I have tried disabling System Restore, rebooting, then re-enabling SR, rebooting, and I still get the same message when I try to create a restore point: "cannot create restore point, reboot computer, then try again."