System Restore is found in Windows by going to Start, All Programs, Accessories, and System Tools. It does not, as you said, "brought my computer back to original issue and placed all the old files in the "my backup" on c drive." System Restore can be used to restore Windows to it's status on a previous date but Windows does not normally store more than a few weeks of "restore points".
I did the full system restore with backup.
As I previously said, "you need to know what that 'backup program' was." Windows has a backup utility called Backup, also found under Start, All Programs, Accessories, and System Tools, but I doubt that what's you're referring to.
This brought my computer back to original issue and placed all the old files in the "my backup" on c drive.
Windows XP has standard folders named My Documents, My Pictures, and My Music. It does not have one called "my backup". So, that would be a folder you, or the software you used, created.
I know the files are there because I can go to:my computer>c drive>my backup>program files>and all my old files (icons)are there. Example..windows media player...I recorded about 25 cd's and I can go throgh the above procedure and see all the cd's but I don't know how to get them out of the backup file to be active on the computer.
What type of files are these "backup" files? In other words, what's the file extension name, the part of the file name after the "."? For example, if I create a backup using Windows Backup, the backup files will have .bkf as the file extension. So, if I backed up the My Documents folder and gave the backup job the same name, I would see a backup file called My Documents.bkf.
On the other hand, if some other backup software were used, the file extension might be something other than .bkf. So, the file extension gives a clue to what program was used to create the file. So, again, what's the file extension on your backup files?