wpbguy:Does WHS have "sytstem restore"????
Nope. WHS is a superset of Server 2003, which doesn't have System Restore. That feature is a part of the desktop OSes, not Server.
wpbguy:Is there a way to backup/restore the WHS sys drive?
Again, no. You could boot from your WHS DVD, and select Server Reinstallation (rather than New Installation.) This option will reinstall the OS, but leave your data intact. You'll need to recreate your user accounts, as well as reinstall any add-ins that you might have had; but, it would fix things.
Note that the reinstall will appear to 'hang' for a considerable amount of time, as it rebuilds the file index. Also, you'll need to reattach your computers to the WHS, by running "discovery.exe" (located in %program files%\windows home server connector)
Have you tried rebooting the WHS from your RDP connection?
Also, have you tried resetting the Console on a client (open the Console > options > "reset the windows home server console...") ?
~Chris
'nearly every day of my life is some kind of computer hell'
Desktop: Shuttle SN41 (AthlonXP 2700+), AIW, T550, PVR-USB2, HDHR; server: Intel E6400 on I965P mobo, 2GB RAM, 2x 500GB WD, PVR500, NV DualTV, Saber2020, 2xHDHR; Xbox MCX, Xbox360