You've repartitioned over the entire HD which is why your original partitions are missing. I believe the error refers to the empty partition which now spans the entire HD, that it will be replaced by the missing partitions which you checked, probably setting your HD back to exactly how it was before you repartitioned the entire HD space with a new partition.
However I don't see Vista listed there if it was installed in the lower numbered address. The only sizeable partitions showing are your Windows 7 and the 121gb partition I'm guessing is your data at the right end of the drive.
So I would continue with the partitions you've checked, then after Recovery Wizard completes, Apply the step on the master PW drive map so it completes everything.
Then see if you can get Windows 7 to boot. If not, boot back into PW CD, rightclick on Windows 7 partition to Modify>Set to Active, OK, then click on the HD to highlight it, from Disk tab select Rebuild MBR, Apply. See if Windows 7 boots, if not boot into Windows 7 DVD Repair console or Repair CD to Startup Repair - Run 3 Separate Times.
What I would do myself is copy my files out after booting into Windows 7, or rescue them to your external using the Windows 7 DVD or Repair CD this way: Copy & Paste - in Windows Recovery Console
Then I'd reinstall Windows 7 so that it is correctly lettered C instead of W, which happened because it was installed from Vista rather than correctly booting the DVD to install.