Well intially all as per blackviper, but have tried with services back as default too - system resore is disabled at startup only - cant think what else i could have done to cause this
Per me as in what? "Safe?" I have many recommendations spread through lots of pages... In general, if the default settings do not work, then services are not an issue.
Also, what do you mean that System Restore is disabled only at startup? It should be enabled while you are attempting to create a system snapshot and having it disabled may mean that no restore points are available to create a snapshot of.
If you followed the disabled procedure of System restore on my Super Tweaks page, you should reverse that action... The page assumes that if you wish to disabled system restore, you also wish to disable snapshot creation in any manner.
I do not use this feature, but I have a live system available to kick it around and see what breaks it, if any of my service recommendations does so:
I just created a system repair disk with System Restore disabled.
What "error" do you get? Is your UAC settings too high to not allow you to perform the action? Is their a shield next to the link? Are you logged in as a guest or administrator?
Many factors could be the cause of this problem, but usually, service settings is not any of them.
However, anything is possible.

Good luck and keep us posted.