It is a common problem and one that is well documented that to get rid of viruses in windows system folders you have to disable system restore otherwise they end up in the _Restore points. So your system is compromised when you use system restore to a point where the virus was in your system, the whole concept/idea of system restore is to go to a point where your system was stable and with a virus in a _Restore point that can't be guaranteed.
The fact that you used an on-line scanner and it didn't find anything in the system volume information could mean that it either avast got it wrong or the on-line scan didn't scan the windows protected storage, or didn't scan to the same levels, or because if it finds anything it can't effectively deal with it. In any case there is still doubt as to the contents of a restore point and I would have a seconds hesitation in disabling it and clearing it out. Once clear after an other scan you can enable system restore and do a manual creation of a restore point then when you know things are clean.
System Restore is permanently disabled on my system, I take regular hard disk images and use that as my fall back position along with daily data file back-ups.
SYSTEM RESTORE - Info - Troubleshooting
There are many, many reasons why a System Restore may fail. For example, see "Why are previous restore points not working?" in the "Troubleshooting" section of this official Microsoft page:
http://www.microsoft.com/technet/prodtechnol/winxppro/plan/faqsrwxp.mspxThere's lots more on that page that's worth reading too. Note especially the sections on "Does System Restore protect personal data files?" (the short answer: no); "What should I do if System Restore does not work?"; "Why are my restore points missing or deleted?"; "Why does the System Restore Wizard lockup?"; and so on. Just a few minutes on that page ought to convince just about anyone that System Restore is not intended for heavy-duty system protection!
More info:
http://www.kellys-korner-xp.com/xp_restore.htm