The Acer Upgrade Kits contain a white Windows 7 DVD which is a full bootable installer with the repair console on the second screen. It should have a product key insert; save this in case you decide to do a clean reinstall. The green CD has apps/drivers
to choose from.
The Windows 7 installer is the same for full retail as it is for the Upgrade version - only the keys differentiate the version. You can do a clean reinstall by booting the DVD and it will scan the HD to see another OS to allow use of an Upgrade version key. If you pre-format or have a new HD, use a workaround given here: Clean Install with a Upgrade Windows 7 Version
However, reinstalls are never again necessary if you save a Windows 7 backup image, which can reimage the HD or a replacement in 15 minutes from the DVD repair console. I store a copy of the backup image in a primary partition on each of our computers, with a copy on an external HD. The DVD reimaging app autodetects the images on a primary partition or in the root of the external. Repair Install
in Windows 7 is done from the desktop, while the DVD Repair console has the standard repair tools you mention.
If you'd like to remove the Recov partition, post back a screenshot of your full Disk Management map so we can advise you better. Use the Snipping tool in Start Menu; attach file with paper clip in reply box.