System Restore is one of the most important – and most misunderstood – features in Windows XP. Used properly, it can save you hours of painful reconfiguration if you inadvertently install a bad driver or program. If you don’t understand its inner workings, you’re at a serious disadvantage. Carl Siechert, Craig Stinson, and I spent a lot of time delving into this feature in Windows XP Inside Out, Second Edition and Windows XP Inside Out Deluxe, Second Edition. In Chapter 2, “Installing and Configuring Windows XP,” we explain how you can customize System Restore to match your preferences. In “Recovering After a Computer Crash” (Chapter 39 in the Deluxe Edition, Chapter 32 in the regular edition), we explain how this feature works and how to use it properly.
System Restore settings and preferences are stored in the registry. Most of the values found here can be adjusted safely and easily using the System Restore tab of the System Properties dialog box. By default, System Restore is configured to allow its files to occupy up to 12 percent of available disk space on every drive. On a 60 GB drive, that adds up to more than 7 GB of storage space. That’s excessive. To rein in space usage for a specific drive, open Control Panel, double-click the System icon (it’s in the Performance and Maintenance category if you’re set up to use the Category view of Control Panel), and click the System Restore tab.
From the list of available drives, click the drive letter that corresponds to the drive on which Windows is installed. (Normally, this is C:) Then click Settings to open the dialog box shown here.

Move the slider control to the left until you reach a size you’re happy with. A value of around 1 GB should be sufficient for most people.
A few settings, however, can only be adjusted by manually editing the values stored in the registry – specifically, in this key:
HKLM\SOFTWARE\Microsoft\WindowsNT\
CurrentVersion\SystemRestore
If you are an experienced Windows user and you’re comfortable working with the registry, you can change the interval at which restore points are automatically created. All the standard warnings apply here: Editing the registry is dangerous. You can screw up your system and even render it unable to start. If you do, you’re on your own. Just so we’re clear…
Normally, System Restore automatically creates restore points every 24 hours. To adjust this interval, change the value RPGlobalInterval from its default setting of 86,400 seconds (24 hours). Cut this figure in half, to 43,200, if you want to save restore points twice a day; triple it, to 259,200, if you want restore points created every three days.
By default, System Restore deletes restore points after 90 days. To adjust this interval, change the value RPLifeInterval from its default setting of 7,776,000 seconds (90 days). A value of 2,592,000 seconds (30 days) should be sufficient.