Hold on a sec. I think I've found the problem.
I can get to control panel=>Administrative Tools=>Services in normal mode in Family(Admin). There I can that find System Restore Service is stopped. This should always be running right? It is set to run automatically. When I try to start it, a progress bar pops up with the message that the service is starting and moves quickly. When it finishes, another window says that it has started then stopped. It goes on to say that some services stop automatically because they have no work to do.
Does System Restore Service run continuously collecting data when it is working? This must be the problem because it matches up with the original restore error, System Restore has been turned off. Anyone know how to get this service to stay running?