Files in System Restore is recoverable
Another great feature in Microsoft Windows is the option to recover previous versions of the modified files that System Restore in Windows has saved as backup of your system state.
Windows XP, Vista and Windows 7 have a System Restore feature that will keep copies of your files and settings. Any file extensions monitored by System Restore are protected by Windows by creating a restore point. If you have Windows XP, you will find the list of file extensions that System Restore in C:\Windows\System32\restore\Filelist.xml. For Vista and Windows 7 users, visit MSDN to view the list of file extensions that are monitored by System Restore.
In Windows 7 and Vista, there is an option to recover your files using the Previous Versions feature. Any files that are monitored by System Restore are recoverable, provided that your System Restore is enabled in any partition or system drive and has created a restore point before a file has been modified. An Example is the filters.txt file that I have for MailWasher Pro, whenever I edit MailWasher settings on what it needs to filter, System Restore has kept a copy of its previous version so I can restore to it, if necessary:
Your options to recover the backup file in System Restore i.e. the previous version of the particular file is to "Open", "Copy" or "Restore". Open means you will view the file, Copy means you can copy the previous version to another location while Restore will command Windows to replace the modified file where it is located.
If System Restore in Windows has not run again to create a restore point (which is done daily by default), you cannot recover a previous version. An example is a file that I modified 2 hours ago: