Q. How can I use Group Policy to disable System Restore in Windows XP and later?
A. System Restore is a systemwide setting. As a result, you must disable it at the Computer Configuration level by performing the following steps:
Load the policy that you want to modify. For example, go to Start, Programs, Administrative Tools, Active Directory Users and Computers; right-click a domain; select Properties; select the Group Policy tab; then create a new policy or edit an existing policy.
Navigate to Computer Configuration, Administrative Templates, System, System Restore.
Double-click “Turn off System Restore,” set it to Enabled, then click OK.
Close the policy.
The change will take effect at the next policy refresh.