Originally Posted by Andersen
System restore has been completely rewritten from scratch in Vista. It's now based on the volume shadowcopy service that existed in older versions of Windows but was defaulted off. Any time a modification is written to the hard drive, the diff between the new block and old block is saved. Hidden virtual drives on your system will actually allow you to look at the exact state of your hard drive at any day over the past few weeks, depending on how much space is allocated for this (defaults to 15% of disk space).
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Wow, that sounds like a vastly superior implementation to the utterly horrible restore system in XP (which ~could~ restore a box to a functional state but you'd be damn lucky to have it that way for long); why doesn't Microsoft attempt to advertise improvements like this that people could, you know, appreciate in a meaningful way? (a new, shiny, GUI isn't really 'meaningful')