System restore, IE7 problems and more

I hope someone can help, since MS support gave up through e-mail. System is 1 year old, AMD Athlon 64X2 dual core 4200+, 2.21 ghz, 2GB ram, running XP Home with SP3. I first noticed problems when trying to access IWin.com, I have a membership there and never had any problems, use it all the time. I started only getting messages that Java was not installed, etc. I checked multiple times, disabled, re-enabled-nothing worked. Java.com shows that I have it, newest version, working. Then I started noticing other sites had some graphics, photos, ads showing, but big white spaces where others were missing. Went to MS, most things on their site show, others do not, and I cannot click any of the button links at the top. Ran full scan with Kaspersky AV, followed with AdAware and Spybot. Problems still existed. Uninstalled Kaspersky, installed CA (only because that's the free one with RoadRunner). Ran full scans with that-still no help. Decided to try System Restore. When I accessed through System Tools, hourglass turns 1 or 2 times, nothing else happens. Tried to access it through sidebar on Control Panel window, and get a blank white window that says System Restore at top. Spent a full week e-mailing back and forth with MS support tech Vincent, who had me un-install last updates and re-install, among many other things, including trying to access System Restore in Safe Mode with Command Prompt-still nothing works. I also notice when starting in Safe Mode that it shows 2 accounts-Administrator and Owner. Owner is my account, I have always tried to make sure there was never another. I have read through the forum here, and tried a lot of suggestions to others' problems, installing and running Malwarebytes, SuperAntiSpyware, and Autoruneater. First scan with Malwarebytes showed several things, but every scan since, in normal and safe mode, have come up absolutely clean. Google Chrome and Firefox both work fine, although I am still not able to download, install and play any games, whether from IWin, Realarcade, Gamehouse, or Pogo. Either they don't download or they don't fully install and run. Can anyone give me any help with this? My computer came with XP Home pre-installed and no disk, although I do have an older disk from my old laptop that I could probably use if I absolutely have to, I'm just hoping I don't have to go through all that uninstalling of SP2 and 3 stuff. Any help would be greatly appreciated.