Passwords That Are Restored:
1. Program passwords are restored, such as Hotmail Messenger, AOL Messenger, Yahoo Messenger, and other Web server-based passwords. This behavior is by design: The programs simply cache these passwords; the actual passwords are
stored on a Web server. System Restore does not actually change the password, but it changes the password that is remembered by the program. You can use the current password for the program to log on to the server.
2. Domain and Computer passwords are restored. This behavior is by Design and is a limitation of System Restore. System Restore only rolls back the local machine state. Part of the information about joining domains resides in Active Directory, and Active Directory is not rolled back by System Restore.