And YES, this IS about System Restore.. The System Restore program creates a "system volume information" on every drive that it is monitoring. Any and all infected files will get recreated there until you make those system restore volumes go away. To eliminate viruses from those "system volume information" folders (System Restore volumes), assuming you're using Windows XP, then RIGHT click on "My Computer", choose "Properties", then click on the "System Restore tab, and place a CHECK mark in the box next to "Turn OFF System Restore in all drives", then click on "apply", then OK.. Once that's done, restart the computer into Safe Mode..
How To Start In 'Safe Mode'
Once in Safe Mode, check to see that all "system volume information" folders are gone.. If they are not, then they have been artificially created by something.. RIGHT click on that folder, chose "Delete" to make it go away.