Hi Dan,
Losing your personal files is a serious problem.
Visit the Microsoft Virus Solution and Security Center for resources and tools to keep your PC safe and healthy. If you are having issues with installing the update itself, visit Support for Microsoft Update for resources and tools to keep your PC updated with the latest updates.
It can be downloaded from here: http://download.cnet.com/Restoration/3000-2094_4-10322950.html. It can be used to retrieve files that seem to have been permanently deleted. I have used this program several times with great results. You will have the best results if you run this program as soon as possible after the accidental deletion.
I hope you are able to retrieve your data. It also serves as a reminder that System Restore will not actually restore your user files; it’s only for system files and settings. To backup your data files, you need to use Windows Backup or some other backup program.
Good luck,
Barbara