Are you saying that after you nuked the computer and reinstalled Vista, that there are files (what kind) are stuck in the "restore repair" section?
I think this is applicable.
It looks very labor intensive.
Ok. What I would do from here on when you're doing the restore stuff: USE ADMIN ACCOUNT that you've created for yourself. During a basic install there is a question to create password for the Admin account, God level. I hope you created and saved that one. If not, we can work around that.
I would tell everyone to LAY OFF THE MACHINE until it's proven to work properly and has been backed up when it's at "perfect we like this" level.
Get windows updates onto a usb stick, maybe?
Get the antivirus .exe install on the usb stick.
Find mfg website and start pulling drivers, I like to use the apps on the website for pulling multiple things down.
Get a couple of utilities on there too, ccleaner, magical jellybean.
(disconnect from internet for security reasons.)
Get into Admin account.
Delete everyone's account besides yours.
Start installing the updates.
Lock the admin account.
They want it fixed? They have to lay off.
Vista is known to hang for a long time after an install/reset. Leave it be. Threaten finger removal if anyone turns it off or clicks on stuff.
Overnight or so you should have the major patches for the machine installed. You will want to reboot a time or two, make sure everything starts up smoothly.
Install the anti virus.
Reconnect to internet, update anti virus.
you save time by using another internet connection to pull the major installs/issues down while the install here is running.
install the drivers, etc.
Create user accounts, passwords.
Make sure your own account is not the Master Admin account.
Run CCleaner to tidy up temp files, registry stuff, etc.
Back this created happy nothing odd installed - IMMEDIATELY. Once that's backed up and you know it's all working, then let them play on it.
Vista is a pita on installs.