A System Restore and a System Recovery are two separate actions. A recovery reformats and re-installs all originally installed programs. (And can be done on an HP from the boot menu without a disc. "F11" - if you haven't deleted the partition) and you must re-load your backed up data. A restore rolls back your system to a prior point in time. You will only lose anything saved after that restore point.Check your help and support section for more details. (Not that I'm advocating reading the instructions)

I have Vista and it's saved my ass twice, without dumping everything and starting over. I should add that Windows will use 15% of your HDD to save restore points after which it will overwrite the oldest one,so restore won't help you if your last known "good" one has been overwritten. Note: That adds up to
30Gb on a 200Gb HDD .Disk clean-up will let you delete all but the most recent restore point to regain the storage space IF you don't need them any longer. I have seen two HP laptops that had restore de-activated, probably to conserve drive space but I'll be leaving mine on for "stupid" insurance.

Good Luck!