when you press f8 and select the right disk nothing has to be fixed!! That's why "startup repair" and "system restore" didn't fix your problem.
What was in BIOS the boot device sequence? probably floppy,dvd, harddisk 0, harddisk 1.
You told in thread both disks were swapped. What happens when starting from wrong disk?
It should execute the MBR of wrong disk and search an active partition on it. This is not the case so it should have said something like "operating system not found".
I think your MBR on disk1 (where E-volume is on) is corrupt. Was this once a linux disk or did you do strange things with it? To fix it and to prove I'm right:
-press F8 and enter recovery console. Then Commant Prompt DIR E:
(sure this is your E volume?)
BOOTSECT /NT60 E: /FORCE /MBR
try to reboot from wrong disk and see if there is still a blinking cursor. OF course we still don't know why swapping of disks occured.