I found the ans on another forum. It worked GREAT!
Here it is, "after some careful deliberation and checking the answer on these forums and going through the problem myself for all of five minutes i'd like to propose a simple and yet almost instantaneous answer that doesn't cause you to restart or have to uninstall anything. hit your startup button and where it says search, type in msconfig, under the services tab hit the "enable all button" this should allow you to run you're system restore with no problem whatsoever.
i can even reproduce the problem by disabling a few services in there. but anyways theres you're fix. it was alot more simple than some people made it out to be -_-
have a nice day ^-^
(and after you're done, dont forget to disable the services you don't want running"
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