In 'My Computer' go to the C drive or whichever drive the operating system is installed on. Right click the Documents and Settings folder, in the Properties window if the 'hidden' attribute is checked then uncheck that, apply the settings, OK it and see if it helps.
The infection must have done that. Just as well the System Restore wont work as you could easily drop yourself right bang into the infection again.
Disable System Restore, reboot and then re-enable it and the infected restore points will be gone. How to: http://support.microsoft.com/kb/310405
I trust this is XP SP3?
try this also,
open up a command prompt:
attrib -s -h -r /S /D
that should birng your files back from hiding