One more question...
What kind of user are you for Vista? Plus - what version of Vista are you using?
I got a feeling you have administrative rights... but you are listed as a user. That and you are more likely using Vista Home Premium. This makes a big difference on being able to handle the shadow copy files and even the hibernation feature correctly. With Vista Ultimate even the true administartor has to assume the rights of control to be in control of this. Look here and see..

Control Panel\Administrative Tools\Computer Management\Local Users and Groups\Users - to see what kind of a account you have?

Control Panel\Administrative Tools\Computer Management\Local Users and Groups\Groups\Backup Operators - to see who is in control of said feature?

These are in Vista Ultimate and not found in Home Premium.
The system will not tell you the complete truth in Vista Home Premium. It has a built in security feature as did XP Home Edition had for the same exact reasons. Thus it does not do as XP and let you know what you can't do. It just does not do it and/or let you know it is not going to do it either.

Good Luck
SGT  

I think something may be off, today I did another disk cleanup and also removed all restore points but most recent and now I have 260 GB's..Free space...  

The file structure may be corrupt and Windows is incorrectly showing disk usage.

Go to Start > Run and type 'command', this will bring up the command prompt. Whe you have that type 'chkdsk' and see what it says. If there are a few file errors you can repeat again, typing 'chkdsk /f', if there are loads of errors type 'chkdsk /r'. Both these will ask if you want it to run the next time you boot - say yes to that.

If there are no errors from chkdsk, we'll have to think of something else     

Again the question has to be do you have access to all the files that are on the drive? If you do then you have to believe chkdsk did work correctly. Then some program was running that you couldn't see. I would keep an eye on the % or amount of freespace, if it changes by any amount that you can account for, something got turned on. I wonder if it could be some type of malware.

You do have a unique problem.