It shows your E: drive as
Active. Right click on your C: drive and click on
Mark partition as active. You may need to do a
startup repair afterwards if it will no longer boot into Windows 7.
If for some reason E: is still listed at "System" and required to be included in the system image, then temporarily copy the contents of E: to your Backup (B: ) drive, format E:, then copy the contents back to E: .