Need help with Recovery Manager

If there's here any user with a Hewlett-Packard PC that has preinstalled Windows 7 , maybe has notice that has some recovery tools, which are call "Recovery Manager" and is showed in the start menu. Inside the program there are many options, and two of them are which I need further information. (Sory but the interface is in Spanish, anywhere options are positioned in the same place of the English version... I think :s)



One of them (mark as number 1 in red) allows to restore the computer to its original factory condition. So what I figure out is that the program will format the hard drive and will install install everything from scratch. Am I rigth?
The other option (mark as number 2 in red) allows to delete the recovery partition. Is that recovery partition the same which is common name as FACTORY_IMAGE ?

If anyone KNOWS something about this, please give me a hand, thanks.

Unless it gives you a further option for Non-Destructive Recovery which saves your files, a Factory Recovery will wipe the HD first before putting it back to factory condition.

It can also be run from boot by tapping the F11 key at bootup.

Make the Recovery Disk set from within that Windows7 utility now so you have another option, or can then consider wiping the Recovery partition although having it as another backup is probably wise with a Win7 computer.

Many tech enthusiasts find a clean-copy retail installer for their version to clean reinstall without the factory bloatware, using the Product Key on COA sticker on machine. In that case, you can wipe the HD before reinstalling, but make the Recovery disks first as sometimes the maker requires factory install to service hardware warranty.

But as far as I understand, there is a difference between the FACTORY_IMAGE and the set of disk, rigth? I mean they are not the same. The facory image has being updated since I first used the pc. And the set of disk seems to just content the files needed to recover the pc to its original condition, rigth?.

There is no difference between the set of disks you create and the recovery partition. All the disks are is a copy of the data in that partition so that you can restore the computer to its factory condition either by means of the recovery partition or the disks you created.

Here is the disk management:

And here you can notice it has been modified:

The "folders" that are boxed in red, are those that I have no access, and they are modified. There are also other files modified, but I can see them.
Maybe HP gave a particular funtion to the unit they call FACTORY_IMAGE and I don't know which is it; or maybe is something wrong...

I can not acces the Recovery folder, even after changing the option of show hidden files and folder and uncheck the option of hide system protected files. Here is a pic of what I can only see inside:

Is in Spanish, but in English it says :

Recovery partition

Warning

This area of the hard disk (or partition) contains the needed files to perform a system recovery.

Do not delete or modify any of this files.

Any change in this partition could prevent a system recovery in the future.

So here is something wrong. But I will tell you the full story about why I want to recover my windows.
It happened that my sister came one day with the idea of upgrading the OS to Ultimate (I used to have Windows 7 Home Premium) as well as a friend told her it was possible. So, without advising me, she run the Windows Anytime Upgrade and wrote a key. Then the OS upgraded to Ultimate, without problem. Some weeks ago I was trying to download the Windows XP mode, but previously a genuine windows veryfication was needed to run. I clic OK and some seconds later appeared a window telling me my Windows version was illegal. Of course my sister doesn't know anything about it. Up to know I found some "ways" to be able to use the pc until I fiss this mess. So what I want to do is to run the recovery manager to stay with my ORIGINAL Windows 7 Home Premium. I'm not sure if it will work.

But even before this matter, when I have Windows Home Premium, I had looked inside the FACTORY_IMAGE and noticed that some folders were usually been modified. The Recicle bin, for example, that is inside there always has been modified.
It seems like if the system were doing backups of some things in that partition.

Here is a pic with the dates of creation and modification of the folders. Take a look of the one boxed in red:

Do you think I could recover my Windows 7 Home Premium if I use some way of recovery like the set of disks?

P.D.: I can not remember if I burn the disk after or before the change of my version of Windows.