@jcribb sent this to me earlier @mattb Cancelled sales order is different from a closed sales order. While you can re-open a closed sales order, you cannot restore a cancelled sales order. The ability to restore a cancelled sales order is covered by Enhancement 28338 - Allow cancelled Sales Orders to be restored (un-cancelled).
When a sales order has been cancelled, the only option is to re-create the order or make a copy of the sales order.