You have come across one of the more important privacy issues in Windows. Perhaps the biggest irony of the situation is that everything worked as intended. Eraser did erase the files, but System Restore replaced them, from the copies held in the restore point. Unfortunately, Windows does not make it altogether straightforward to fix this problem; the Restore folder on each drive is completely inaccessible to Eraser or any other file management application.
Views on the usefulness of System Restore vary; my own view is that it is of limited value, except as a means of recovering immediately from a system change that has gone wrong. Accordingly, I switch off System Restore for all non-system drives. I also use the utility in CCleaner (which is free) to delete all but the most recent restore point, and I make sure that, in the properties for each drive, shadow copies are disabled. Finally, I erase free space from time to time to ensure that the deleted files (including System Restore files) cannot cannot be recovered.
In your case, I would use CCleaner to remove all restore points (except the current one, which cannot be deleted), and disable System Restore on all drives. This should delete the remaining restore point. I would then erase the offending files from the fg directory, and also erase free space on the drive(s). At that point, I would use the CCleaner utility to check that it cannot find any restore points. I would then re-enable System Restore, but not shadow copies, on the C: drive only. That will create a restore point, which should certainly not include the erased files. If any earlier restore points remain, use CCleaner to delete them.
All this, it has to be said, is pretty long winded; erasing free space takes hours. Once it is done, the best means of ensuring that problems do not recur is
- to ensure that, if at all possible, sensitive files are not stored on a drive that has system restore and (particularly) shadow copies enabled;
- where files are stored on such drives, make a new restore point after erasing such files, and delete the old restore points;
- when sensitive files need to be removed, erase them as soon as possible
I hope this helps.
David