Thgis may help from a previous post:
Jester2K II Sun, 17.08.03 | 16:21
If your AV detects a virus in the C:\System volume information\Restore\..... etc directory this means System Restore has backed up the Virus and your AV can't delete it. Windows protects these files for obvious reasons.
The virus cannot harm your PC directly from the System Restore folder.
To remove the virus from there you need to flush System Restore.
1. Click Start, Settings, and then click Control Panel. 2. Double-click the System icon. The System Properties dialogue box appears.
NOTE: If the System icon is not visible, click "View all Control Panel options" to display it.
3. Click the Performance tab, and then click File System. 4. Click the Troubleshooting tab, and then check Disable System Restore. 5. Click OK. Click Yes, when you are prompted to restart Windows.
Once you have cleaned the virus or other problem from the computer, re-enable System Restore by following these directions
To enable Windows Me System Restore:
1. Click Start, point to Settings, and then click Control Panel. 2. Double-click System, and then click the Performance tab. 3. Click File System, and then click the Troubleshooting tab. 4. Uncheck Disable System Restore. 5. Click OK. Click Yes, when you are prompted to restart Windows.