XPlite is 100% compatible with Windows XP System Restore. You can remove EVERY basic feature in XPlite and still have the full protection of System Restore provided you have allowed enough disk space for the changes to be stored (The disk space setting is adjustable under the My Computer properties System Restore tab). If you find something wrong after configuring your system just restore to an earlier time. XPlite will set a restore point before making any changes to your system and it will warn you if the restore point can not be set.
Note: If you remove certain Advanced Features you will effectively remove System Restore or prevent it from saving a restore point (older restore points are maintained). You will be notified if you select a component that impacts on System Restore.