System restore will not stay enabled

Hello,

I like to consider that I am somewhat computer literate, though it isn't much. My problem is this: I got hit with what I believe was spyware, and after trying to scan and restart (my cpu hit very high usage for some time, and I was forced to simply restart) I got the blue screen of death just after the windows load screen. After, I tried running AVG 9.0 in safe mode. The scan completed, I did a restart and the same result followed. I tried running system restore, which is disabled, then, regedit which was disabled but I re-enabled it. System restore will not stay on in the policy settings, nor will it run when I try to change said policy. Any tips?