I'm moving your thread to the update folder. OneCare is reporting that it is out of date due to the fact that you are restoring an old image copy of the system to the PC. Until the internal database catches up, your status will be red. This happens with a System Restore and also with image restores such as what you've been doing.
As for the infections, rather than taking the rather extreme step of restoring the system, please contact support for help in removing the malware, which you are likely restoring with your image restore.
How to reach support (FAQ) - http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=2421771&SiteID=2
Information to help troubleshoot and resolve update problems -
http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=1286736&SiteID=2
-steve
