Windows 7: "Windows has encountered a problem communicating with a

Hi. XP home and WIndows 7 Ultimate on dual boot. Today I shrunk the Xp in order to make room for a new parition to store a Windows 7 Backup Image. A lettered partition is viewed as a drive by the Backup Recovery Image and works well if needed to restore the other partitions around it - have recovered several computers this way since I cannot get Recovery to reimage USB HD.



During the shrinking of the XP parition , I had to move some system files using PerfectDisk10 and got into a situation where the PC could not boot. I was doing this by Remote Assistance and my host didn't have a Windows 7 recovery disk, so we used his Vista Installation disk to access Repair my Computer and restored the boot with line commands to fixboot and fixmbr. After the computer restarted the XP partition was shrunk, so I proceeded to format and install the Backup Recovery Image there. When it completed I wanted to test it, so I had my host put in the Vista Disk to boot into Repair>Restore from Image to see if it cued up the Recovery Image correctly. This same disk which has just worked to restore the boot, now gives this error message during file loading and won't proceed:

"Windows has encountered a problem communicating with a device connected to your computer. This error can be caused by unplugging a removable storage device such as an external USB drive while the device is in use, or by faulty hardware such a hard drive..."

Most Google results on this point to a possiblity of a bad DVD, but since we had just used the DVD, I am concerned this has something to do with the partition drives not configuring properly. The computer is working fine.

My plan is to try an actual Windows 7 repair disk in it asap to test if it will cue up the Backup Recovery Image for reimaging, and run DIsk Diagnostics and chkdsk. Any other ideas or info on this are greatly appreciated.