From what I am finding, that driver appears to be part of the Toshiba Power Management Utilities. It is supposedly in the Control Panel. One article said it is used to manage AC\DC settings, but another one said it was used for fan management and since you are having problems with your fan, I am thinking that is why.
In a post on another site about this problem someone who also had this problem said that this file is needed to correct the problem, s3ktpmx.exe, which is the Toshiba Power Management Utility for Windows XP, and can be downloaded from Toshiba at....http://www.csd.toshiba.com/cgi-bin/tais/su...jsp?soid=134461
It lists these as the Applicable Models:
Satellite 3000-S304, 3000-S307, 3000-S309, 3005-S304, 3005-S308, 3005-S307
That post said if you find it in Control Panel>Add\Remove Programs, to uninstall it and then install the one you download from Toshiba.
I do not know if your model is one of those listed or if this file will work if it is not one of those, in fact, I do not know anything about this other than what I have posted.
I have no idea about how to get that USB drive to work but with your Restore Points being gone and the other problems you are having, I am also thinking you might have some kind of infection. I would run Malwarebytes and SuperAntiSpyware and see if they show any infections. If they do, I would make a post in the "Am I Infected" section of this forum and post the results there and see if you cannot get it cleared up without having to do a reinstall of your system.