I do believe that there is more to this problem then I realized. It won't let me use the restore function, and I found that my CD and DVD drives are not recognized.
I'm sorry to say it, Philly, but those are very similar symptoms to when my mobo was dying... my ROM drives kept disappearing and sys restore would go through the motions but was never successful, and my Nvidia 8800GT graphics card settings would revert back to 600 x 800 from 1280 x 1080... it wasn't being recognised correctly in Windows device manager because the mobo/BIOS was messed up.
My issue started much like yours, with Windows refusing to shut down and sys restore not functioning, then a racing sound coming from the CPU/mobo and freeze ups, then peripherals not being recognised as there.... oh, and the intermittant BSOD's, which were probably graphics card related due to its non-recognition.
Anyone in need of a perfectly good doorstop?
The situation is not quite that bad... it is fixable with a new mobo, depending on make and model, for under a $100 USD.
Best of luck with it Philly. 