If the system restore policy is disabled by Group Policy appears in system Restore Option. Here is the method to enable it.
For Windows XP Home Edition:
Click Start, Run and type regedit.exe and press Enter
Navigate to the following key:
HKEY_LOCAL_MACHINE \ Software \ Policies \ Microsoft \ Windows NT \ SystemRestore
In the right-pane:
Delete the value DisableConfig
Delete the value DisableSR