Summary: System Restore is allocated a certain amount of space on your hard disk. If that's excessive, you can use less, at the cost of fewer restore points.
Is there anyway to make System Restore use less space if we would like to have the benefit of a restore, but not use up all our space? I just saved half my hard drive by taking System Restore off.
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Yes, we can adjust the amount of disk space that System Restore will use.
But that adjustment comes at a price.
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First, I need to be very clear about something: System Restore is not a substitute for backing up. System Restore will not restore everything, and in particular, if you lose data files and expect System Restore to recover them, you're likely in for a rude surprise.
System Restore is best thought of as a backup of your System Registry, and maybe a little bit more. While it might save a few more things than just that, that's the safest way to think of it.
System Restore works by saving a copy of whatever it is that it saves to some pre-allocated space on disk. Each time a new restore point is created it's placed in this space, and when that space fills up the oldest restore points are removed to create room.
You can adjust that pre-allocated space and make it small, but the price is that your system will then save fewer restore points - you won't be able to restore as far back as you had before the change.
Right click on My Computer, click on Properties, and then click on the System Restore tab. Make sure the Turn off System Restore checkbox is not checked. (Uncheck it if it is, and click on Apply.)

Click on your C: drive in the available drives list, and click on Settings...

Here you can see, and control, the amount of disk space allocated to System Restore. In my case, a maximum of 12% of my disk space is made available.
If you want System Restore to use less space, then simply drag the Disk space to use slider to the left to whatever amount of space you'd like to allocate.
If you turn System Restore off, then no disk space will be used.
Personally, I run with System Restore off, and rely on my nightly system backups as my safety net.
Related:
Why isn't there a restore point where I want to go back to? Restore points are a handy way to undo problematic system changes. Even though you can control it some, restore points can only go back so far.
How do I get at System Restore in Windows XP? System Restore settings are in the properties of My Computer, but actually running the System Restore application is a little less obvious.
Why can't I rely on System Restore for backups? There's much confusion about what System Restore actually is and is not. In a nutshell, it's safest not to rely on it to restore your system.
Article C3633 - January 23, 2009
This works for XP but not for Vista in vista os system restore size has to be changed using "shadowstorage" and is quite complex. With the size of Hard drives today and the fact that system restore is set for 15% of the size of the hard drive this can become very large.
Posted by: D.BLake-Knox at January 27, 2009 8:48 AMAs you say above, you can zero system restore by turning it off and then on again. Remember to create a new restore point afterward.
I've had the same issue as Karl.
Posted by: Pollyanna at January 27, 2009 10:46 AMI, too, have totally lost all ability to use System Restore. I think I need to re-install XP, but don't have a disk to do it. Any ideas?
Posted by: Dawn Young at January 27, 2009 11:22 AMI tweaked some registry settings to actually allow more restore points in XP. Recently, I had many restore points created by just one install and I checked dates on the RP'integer' files in System Volume Restore\_restore{*} directory and deleted redundant files. Similarly, I use this measure to save space for earlier restore points not being 'queued out' as available space diminishes. Also it may be that saving one of these RP files on flash or encypting/password protecting it may save someone's bacon, if their system was hacked.
Posted by: Bruce Mandate at January 27, 2009 11:39 AMI have also just been through the above processes trying to do a System Restore to get a vital program running.
Posted by: simon pender at January 27, 2009 6:00 PMI also had the same message "Your computer cannot be restored to ..".
The answer is to boot in SAFE MODE, just keep tapping F8 when it starts rebooting. Then do your System Restore. Then it will work. Phew.
Incidentally, the program was TNT Express Shipper V5.02 used to create consignment notes to ship goods around.
One day I came in and cranked it up and had the message "ActiveX can't create the object (429)". I spent 6 days looking through forums and asking my IT team.
No luck, and I am no dummy at fixing pooters.
Finally I had to resort to System Restore.
I almost went nuts when I couldn't even do that.
A Google search found one forum that advised to boot in Safe Mode, and then Restore and it WORKED.
Cheers. Si
By using "Disc Clean-up", and selecting "More Options", and then deleting the shadow copies, it cleans up a TON of disc space (in Vista).
Posted by: Carl R. Goodwin at January 27, 2009 7:29 PMI've been using XP for eight years and never once had System Restore running or ever used it.
Posted by: Mark at January 28, 2009 2:42 AMWith regard to Karl's and Polyanna's problem, Sytem Restore will often fail due top Anti Virus programs. Security programs such as Norton and Kaspersky Internet Security, protect their own program files to prevent viruses from attacking them. e.g in Kaspersky, this is known as "self defence". If you turn off this protection in the settings of the secuity program, you will normally find that restore will then work. Don't forget to turn it back on! I have tried using the safe mode method that Simon mentions, but it is not always reliable
Posted by: Adam Dunlop at January 28, 2009 11:59 AMcheck this post to alter the size for system restore in vista
Posted by: kant at January 30, 2009 7:50 PMhttp://tandt-u.blogspot.com/2009/01/change-amount-of-space-used-for-system.html
I want to reduce the amount of storage space allocated but everything is greyed out any thoughts?
Posted by: Steve at August 30, 2009 11:34 AM