Virus not detected in disabled folder.

[needhelp]

My virus program (AVG) picked up on a virus in a game I had downloaded from the internet about 3 months ago. This was the first time it had detected this virus even though I run the test daily. Anyways it detected it like I said and it "healed" it and when I ran the test again it did not detect any more virus's. I thought that was the end of it but today when I ran the test again it detected the same virus but this time in my restore folder. (I.m running ME) It could not heal the virus this time and suggested that I remove ther programs folder from the computer, so I ticked yes to that but I got the message that this folder cannot be removed from the computer. So I disabled Restore and ran the test again, this time, no virus detected. Now my question is this, why does the virus scan not detect the virus in the restore foder when its disabled. I mean the virus is still there but doesn't get detected by the virus scan. Does this mean that the virus will not do any damage and it is now inactive. Or is there some other way to get rid of it more permenantly. the virus was called "worm/Franvir-A"
In the meantime of course I cant use the restore function in ME but that doesn't really worry me as long as the virus is not able to reapear again. The original virus was detected in a game called 1945.

[Statica]

What happened was that, you previously were infected, and some of the infected files were "backed up" in the Windows Restore archive. As such the Windows restore archive is not executed (unless of course you restore one of those infected restore points) - however antivirus programs will still detect the virus.
When you disabled Windows Restore, all your previous restore points (including the infected one) were deleted off. Now when you check the system it shows up as clean.
You can reactivate your system restore feature, it will start creating system snapshots starting from the moment you reactivate it - which of course would be clean.

HTH