I know this is 4 years after the reported problem and the original poster has either solved the problem or resorted to more drastic measures.
Ive been wresting with System Restore error 0x80070005 for weeks now and found a solution.
I had tried all the other suggested remedies (close AV, safe boot, SFC, System Volume Properties etc) to no avail. But I noticed in event viewer that a number of drivers were failing to load. There were 9, commencing with NNSHTTP. It turns out these are
residual parts of Panda Anti-Virus left over after their uninstall had failed to run properly. I'd downloaded their uninstaller and tried it but it didnt clear these entries.
I contacted Panda Customer Services (more in hope than anything else) and they sent me links to two removal tools:
http://www.pandasecurity.com/resources/sop/cloudav/generic_uninstaller.exe
http://www.pandasecurity.com/resources/tools/2015/generic_uninstaller.exe
These ran and removed the NNS..... driver entries from the registry.
System Restore now works!!!!
So what have I learned?
- First Microsoft could be more helpful with their error messages (nothing new there!)
- This error - which I've had before - seems definitely linked to Anti-Virus prgrams in general (not just Panda?) - but just uninstalling or closing them is not enough.
I'm posting this because Ive seen hundreds of posts from people suffering from this error, and just hope this helps someone else.