By default, System Protection is turned on for the hard disk or partition that Windows 7 is installed on and not other drives.

You might have a hard drive Recovery Partition called SYSTEM and for that, the default is off. Leave it that way. No long explanation is given since it may take a fine book to explain all the new items.

My answer is to not change it. Restore points are stored just like they were in XP, Vista and now 7. Nothing changed.
Bob