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

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