System Restore enabled but no restore points created

1. Computer: Windows 7 Ultimate SP1 64 bit, 298 GB HD

I used this laptop to get access to internet to repair my home computer (Windows 7 Home Premium SP1 64 bit). First I messed permissions on home computer and then also on this laptop. Windows installer didn't work on any of them. I managed to repair it on Windows 7 Ultimate with gpedit.msc and installer was fine. However, permissions still weren't. So I gave a try subinacl.msi and reset.bat. It did repair some but not all of the permissions to default. I therefore decided to do a system restore. It took for over two hours and then came up with 'not enough disk space'. I decided to do it again, however, this time a message 'no system restore points have been created' appeared. I knew there are system restore points as I had seen them two hours back. I thought it was something with permissions. So I took ownership of SVI, giving SYSTEM and Administrators full control. I also checked HKLM/Software/Microsoft/Windows/Current Version/Reliability.

I also started and set to automatic the following services:
Windows Event Log
Windows Volume Shadow Copy

The right drive was selected for the restore point.

Is there any thing/service I missed?

SVI is set to 'read only for the content' and I have selected the right hard drive to make system restore on. The selected one is C:\ with OS on it and the other one is F:\ which has system protection off. Is that ok?

Should I add some more permissions to SVI (LOCAL SERVICE, NETWORK SERVICE)?

All I wanted to do was to restore the computer to the state when permissions weren't changed. Now it seems that even this won't work. I know there were at least two system restore points when I first tried to do system restore. I know I didn't delete them. I do not have any viruses as it's related to the permissions I had changed.

Any help would be much appreciated.

Help anyone?