if i were you and was about to reainstall os, i would also reformat.
by the way i m not sure if i got you right, but you think that 'system volume information' is a directory which you should be able to acces or anything? cause you cant. nor acces, nor delete. the directory comes with windows XP and has properties system and hidden
about the system restore, how did you 'delete' it? cause you need to turn it off, otherwise it will come back. when you come to the window with 'system restore' there should be settings button, and there you can set how much space do you want to spend for your system restore (but few gb is a minimum, depending on your HDD) OR totaly disable it
__________________
|