I would post the issue about System Restore in the XP Forum.
As to the CDRW drives, if such is noted on boot and in the BIOS, then I always start my repairs by deleting a few registry keys noted in this article. Let me write that I do this even if Roxio software was never used.
Hint: I only do step 4.
I am running windows xp/cd-writer was working when I upgraded. Device manager cannot enable it - I also cannot do a system restore or get into F2 Setup. I have Norton Virus installed and updated.