When I ran XP, I never had an instance where I got system restore to work.
I tried it three times in different cases before finally giving up on it and turning it off.
I don't say that it will never work, just that it never worked for me.
I found out one fact recently that may explain why system restore has so many problems. It seems that if a system restore file is corrupt, any files made after that one will also be corrupt until it is removed.
As far as Winrescue and system restore, they should be completely independent of each other, meaning turning system restore on or off shouldn't affect the backup program.