When you open System Properties and select the System Protection tab, the Create button may be grayed out, with the following message displayed:
Restore point creation disabled by Group Policy

As a result, you're unable to create a System Restore point or configure System Restore.
This happens if the setting Turn off Configuration is enabled in your system, either through Group Policy or using a direct registry edit (possibly using a third-party tweak program). For standalone Windows Vista systems, use these steps:
If your edition of Windows Vista includes the Group Policy Editor snap-in (gpedit.msc), follow these steps:
Computer Configuration | Administrative Templates | System | System Restore
Note: If it's already set to Not configured, set it to Enabled and click Apply. Then revert back the setting to Not configured, and click Apply, OK
HKEY_LOCAL_MACHINE \ Software \ Policies \ Microsoft \ Windows NT \ SystemRestore
"Turn of configuration" setting: If you set the above option to Enabled, the option to configure System Restore on the Configuration Interface disappears. If the "Turn off Configuration setting" is disabled, the Configuration Interface is still visible, but all System Restore configuration defaults are enforced, and the Create button is grayed out. If you set it to Not configured, the configuration interface for System Restore remains, and the user has the ability to configure System Restore.