Found a solution. As I thought, it was that pesky anti-virus software hiding something, and thinking it always knows best... grr.
Despite turning off everything in the initial norton menu you must also click "Settings" and then click "Miscellaneous Settings" then under product security, you have to turn off "Norton Product Tamper Protection." I was then able to do a successful system restore without having to completely uninstall my anti-virus software. Hope this helps.