Sam, I am having the same problem with my Gateway MX6448 laptop. I finally created my restore CDs (four of them), and I want to start fresh with my laptop (hoping that will fix the fan that stops working after 5 seconds causing the laptop to overheat and blue screen or shut down, and the touch pad doesn't work anymore either). After 10 attempts, I too keep getting "System Restore environment is incomplete." After exhaustive searching, I have learned that it is attempting to add some updated files that were added to the CDs to the restore partition on the hard drive that has the original software setup used to restore. But I don't want to restore using the hard drive, I want to restore from the CDs. Gateway System Restore will not give me the option of restoring from CD's; it goes directly to the hard disk preparation program to update the restore partition. If I restart the laptop with the first restore CD in the disk drive, it still goes into the disk preparation program to update the hard drive restore partition. Also, when I do either of the F11 or R during boot up, it still takes me to the disk preparation program although the R control is supposed to be for accessing a destructive restore bypassing the hard drive partition altogether. Very frustrating. I may try buying a new hard drive and see what happens since it won't have a restart partition to update. My extended warranty ran out three months ago. I wonder if this has anything to do with the Windows XP Service Pack 3 update? I tried to restore to an earlier restore point prior to SP3 install, but I don't see restore points older than three months. I don't know how to undo the update to SP3. If I can find out how to get back to SP2 that may let Restore work properly, that that is a guess. Too bad I don't have a restore point from the day I bought the laptop. The restore partition is controlled by PC Angel; double click on the D drive. I can't get past the PC Angel screen to see what is on the partition.