You will have to deactivate System Restore to eliminate the restore files. Once done you can restart system restore, create a restore point and you should be on your way.

Ad-Aware and AVG have different purposes--one is intended to act as a protection device to prevent infestation by viruses et. the other is designed to remove those nasty little things the spy on your system once the arrive as part of something else you download. On other good option is to include Spybot Search & destroy as part of your system's protection suite.