I know that with some anti-virus software installed, it has to be disabled before a system restore can take place. Have you - while not connected to the Net - turned off virus protection and tried restore?

I'm also on an HP laptop, BTW. I use Norton. It does have to have some prefs. turned off completely in order to perform a restoration.

Did you purchase your 'puter through Best Buy? If still under manufacturer warranty, I'd go straight to HP. Best Buy is merely the "middleman."