Hi!

> Does VIEW support CURVAL() and OLDVAL()?

Yes. However, you should use refresh() command for view to get latest values for CURVAL() from server. For tables you need to adjust SET REFRESH command parameters only.

> Again, I am not using view, instead i am using base table with table buffering. Any siggestion?

Hmm, if recall does not works with buffered tables - this is a bug. Try to work in 'SET DELETED OFF' mode, maybe here is a clue.
Anyway, this way is obsolete. With SQL Server recall will never work, only method of new record insertion does works.
Finally, this functionality (record restoring when it is deleted by another user) in most database systems is not supported and such record either added as completely new (with new ID # for key) or just ignored/deleted even when user changed something.