Restoration incomplete

I accidently downloaded malware from an infected e-mail message. the malware has made it impossible for me to go online, and has hidden and deleted a few of my programs. I managed to get malwarebytes running and I believe I have eliminated the malware, but I cannot run a system restore on my computer, even in safe mode. I always get the message "Restoration Incomplete" When I open the event viewer I see

Event Type: Warning
Event Source: PlugPlayManager
Event Category: None
Event ID: 256
Date: 4/27/2011
Time: 11:46:09 PM
User: N/A
Computer: XXXXX
Timed out sending notification of device interface change to window of "BCMWLTRY Windows Application"

What should I do?
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  1. backup your data and reinstall windows
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Security Malware Computers Windows XP