Reformatting hard drive

Working on mains power, Had a sudden power failure (battery does not work). On restart messager on screen read "HP Recovery Manager 1,0,1,3"Restoring factory Image" "This can take 1 hour" Does this mean that Vista is now automatically reformatting the hard drive? Will I loose all my information on the Hard drive? Must I allow the process to continue?

Welcome
The computer has a restoration partition, which allows you to restore the Operating System to factory specs. If it has gone this far the format is completed. You will have your computer back the way it was on the day you took it home. No programs, favorites or settings however.
If it has gone this far, I woould let it run its course and yes, your stuff is lost. If you try to stop the process, now, you may not be able to restart it and then you need a DVD to reinstall. Sorry about the problem

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After the power failure and switching it on this restore was taking place without enabeling it. Wonder why?

All computers are subject to corruption when not turned off properly; anything can happen. In your case the factory restoration was enabled. Sorry about your stuff. I cannot help you with the problems of the past but can for the future. Back up your hard drive once a month, so that this will never happen again.
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Here is a little known fact. If you are still in school and you are working on a term paper and it has 10 pages. If you change one word and save, and power goes off, you can lose the entire document and not just that one change.

Always back up.