Grez, I ended up needing to check out your posts; I'm not sure if my problem is the same type. I'm going to poke around in my boot.ini file like you did but if I don't see anything obvious I'm not going to mess with it just yet.
The problem is that after running easyBCD I have the dual boot option, but only 7 works. When I try to boot xp it says "NTLDR missing or corrupt". At first I was like you, and in easybcd set the drive letter to match the hdd where I had xp installed, but changing it back to C and rewriting didn't help. Any ideas?
EDIT: I also noticed that I did have a 100mb partition in 7 (this is a factory install of 7). I changed the drive letter to S: and selected that for my XP entry in easyBCD but I'm still having the same error when trying to boot XP...