Do you get any error or just "nothing"?
This is a good overview of system restore:
System Restore for Windows XP
& also just another checkpoint:
If you are using XP Pro, go to Start/Run, type: GPEDIT.MSC and press
ENTER.
Navigate to, Computer Configuration/Administrative Templates/System/System
Restore. In the right side window, double click System Restore and Enable
it.
If you are using XP Home, go to Start/Run, type: Regedit and press ENTER.
Navigate to this key:
HKEY LOCAL MACHINE\SOFTWARE\Microsoft\Windows NT\Current
Version\SystemRestore
Look for the value: Value DisableSR. If it is set to "1" double click the
value and change it to "0".