Here's a link or two worth reading. Unfortunately, Windows ME and it's System Restore system have been a little problematic:
Windows ME- Checkpoints that you create after September 8, 2001 do not restore your computer
Troubleshooting System Restore in Windows Millennium Edition
Hope this helps.
I am having problems with my computer which uses Windows ME. I have tried systems restore but it says there are no system restore dates available?? I have checked to see that system restore is enabled, it will not allow me to create a restore point either. Can you help please - Valda