Hi BazW,
System restore is a feature of Windows XP (and some other OS) found by going to "start>all programs>accessories>system tools" and on that list is system restore. Quite a useful feature.
Any file found in "system volume information" is generally one that's in a system restore point.
To turn off system restore, go to "control panel> system" and click the system restore tab. Tick the checkbox for "turn off system restore on all drives". Reboot, turn it back on.
You will loose all prior restore points, so only do this if the 'pooter is running OK.
You will also loose the malware within the infected restore point.