Sorry for the inconvenience, but Live Windows feature is still in its early phase and only works within certain limits. As for the advice, we have successfully tested reinstalling the KB both from SpaceSys Config Tool and from the Windows Update, so reinstalling it should restore system functionality dependent on the KB such as the newer IE versions. The only thing that would not work after that is the Live Windows feature, but SpaceSys itself should be fully functional apart from this feature, regardless of the presence of the KB.
It's hard to tell if the System restore somehow affected SpaceSys but we had no issues in our tests.Perhaps the best thing to do would be to try and repair the SpaceSys setup, or even perform a clean install of it. If the problem still persists after that, you can send us a more detailed description of the issue (an error message or a screenshot...) and we'll go from there.
* One thing that comes to mind is maybe the time limit being activated for unregistered version, but in that case you should see a registration prompt and not an error message.