Hi forryh,
That does make a significant difference... :D
The second part, step-by-step:
To open Group Policy Management, click Start, click Control Panel, click Administrative Tools, and then click Group Policy Management.
In the left pane, click on User Configuration > Administrative Templates > Windows Components > Backup > Client.
In the right pane, right-click on Turn off the ability to back up data files and click on Edit.
To Enable Backup Data Files -
Select (dot) either Not Configured or Disabled.
Click on OK.
Close the Local Group Policy Editor window.
Please note that I am only interpreting the instructions in the second part of the link you included. I don't have Group Policy Editor, as it doesn't run on the Home editions of Vista, so I can't test any of the above.
It doesn't make a hell of a lot of sense to me that you'd turn off the ability to backup data files to correct this problem, but those are the instructions.
I haven't been able too find any other solutions, so give it a try and see what happens. After you follow the above, see if you can do the restore, first in Normal mode, and, if that doesn't work, in Safe mode.
If it still doesn't work, I'd contact Microsoft Support directly.
Please let us know what happens.
Ed