1. Click Start then Computer.
On the Tools menu Then or Organize Folder Options.
On the View tab, click “Show hidden files and folders”.
Clear the Hide protected operating system files (Recommended) check box. Click Yes when you are prompted to confirm the change.
Right-click the System Volume Information folder in the root folder, and then click Properties.
If the Read-only attibutes is checked, uncheck it and click, OK
Now try creating a restore point.
Warning: Remember to hide the hidden System Files when done.
2. This error might occurs because the recovery partition is enabled for File Backup or System Restore and is almost full. To work around this, do not select D:\ as a backup source. Also, go to System Protection in Control Panel and make sure that D:\ is not
enabled for restore points.
3. Also try to reboot the Computer in Selective Startup with all the Protection Disabled
4. Type Services in Start Menu Search Box, hit Enter. Make sure that the Volume Shadow Copy Service is Running and set on Automatic. If the Status of System Restore Service is not Started, Start it. Also set it on Automatic if it is not. A reboot may be required.
Reconfirm again, and now try
5. Reset the Repository.
Boot into Safe Mode without networking and open a command prompt as administrator.
Now Type net stop winmgmt and hit Enter. This will stop the Windows Management Instrumentation Service
Next go to C:\Windows\System32\wbem and rename the repository folder to repositoryold
Now again open a command prompt as administrator, type net stop winmgmt and hit Enter.
Next Type winmgmt /resetRepository and hit Enter.
Restart.Now see if you can create a System Restore Point manually. Hope some of this helps.