I don't have System Restore in my Services folder either and it does automatic restore points at every installation and update. The way to setup automatic updates is to go to Start / Control Panel / Backup and Restore / Create a restore point or change settings and make sure there's a check in the box next to your drive(s). If there's a way to set it up to do automatic restore points at various intervals (say every other day or every Thursday or something like that) then I don't know how to do it (and as far as I know my system is working perfectly - but maybe not if this "feature" is absent when it should be available).
This thread might help: http://www.vistax64.com/vista-performance-maintenance/229407-automatic-system-restore-points-sp2.html. Here's another article on the problem http://www.vistax64.com/vista-performance-maintenance/104579-automatic-restore-points-not-being-created.html which suggests that the way to get it done is to use Task Scheduler. I'll bet that would work if I could figure out the executable file necessary to initiate creating the restore point - do you have any idea?
Good luck. Hope this helped and please post back in either case - especially if you know the name of the file that starts the create restore point process.
Lorien - One - MCSE/MCSA/Network+/A+