The problem is that your old Windows 7 is on a Logical Extended partition which cannot host System boot files.
But we can probably start it up anyway without having to convert the Logical to Primary which would require moving the data off of E to delete it. Instead we can use the 101mb partition to recreate the Windows 7 boot partition.
Backup all of your data first externally. Partition Wizard bootable CD has never failed in hundreds of these repartitioning operations but your data should be backed up anyway.
Download and burn to CD free Partition Wizard
, boot PW CD, select 1 for screen resolution, rightclick on 100mb space to Create New NTFS Primary partition, assign no letter, label System Reserved, click OK. Now rightclick again on new Partition, select Modify>Set to Active. Click Apply.
Next rightclick new Windows 7 partition to Delete, click OK.
Now rightclick on old Windows 7 partition (which will assume C afterward), select Resize, drag left grey border to the left to take up old XP space, click OK. Apply all steps.
Confirm you have 100mb Primary Active partition, reboot into Windows 7 DVD Repair console or Repair CD to run Startup Repair
up to 3 separate times with reboots until Windows 7 starts up.
A benefit of the 100mb System Reserved partition is that it places the Repair console from the DVD on the F8 Advanced Boot Options
so make sure it is there now.
The alternative method would be to move the data off your Logical data partition, delete it, Modify old Windows 7>convert to Primary, mark Active and run Startup Repair 3 times until it starts with the System boot files on itself. You can then (or before) delete and resize into the old XP and 101mb space.