System Restore has encountered a problem and needs to close

It sounds as if System Restore may have gotten corrupted. You can try reinstalling the feature. Here's how:

1. In Control Panel or Windows Explorer, click Folder Options and then the View tab.
2. Under Advanced Settings, scroll down and find "Show hidden files and folders." Check the box.
3. Find "Hide extensions for known files types." Uncheck that box.
4. Click Apply, OK.
5. In Windows Explorer, find your Windows folder (usually on the C: drive but not always). Navigate to the inf folder and open it.
6. Find a file named sr.inf
7. Right click the file and select Install.

Important: this creates a new installation of System Restore, but it will delete any restore points that you had created previously.