Compaq EVO d512, WinXP Pro, normal factory machine from there.

I'm trying to help a friend up north fix her problem.
Started as: Son using her machine did a bunch 'o downloads, disk cleanup, and defrag last week. When she got back to PC for her own needs - her address book and a bunch of data is missing.

So, rather than resort to all kinda software to undelete or whatever.....thought we could go back to earlier date/Feb. when her stuff was last seen by her....and System Restore.
First: I had her run a couple different antivirus (Housecall, AVG), no severe threats found.
Next: She was trying to (normal mode) run SR and each date gave the can't do, have been no changes error, and one error said software distribution point - also would/could not restore to that point.
Next: ok. let's try getting into safe mode, disable avg for the moment, and try sys rest. there. She says she can't make it go into safe mode. Keeps booting normally, as if F8 is not even being pressed at all.

I'm stuck in stupid right now, trying to think what we can attempt next.

Any suggestions ??
Thank you
Nanci