System restore basically takes a snapshot of your system and allows you to recover back to that point and erase the changes made after the restore point. (thats the theory) but it hasnt always worked for me...
you can turn it on and off in the control panel under system
or access it thru the accessories/system tools to manually ( good idea before you make changes you arent sure of, like loading beta software) create a restore point, otherwise the system will automatically create them
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