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#21
Whatever you do regarding the Linux partition, it won't cure the problem with the Grub error, because that is on the MBR. Since I doubt that you are trying to erase any sensitive data on the Linux partition, use the quickest method. Not certain about the first 3, but the DoD takes longer.
The MBR can be restored to either Grub, or to the Windows Boot Manager, but I will leave it to someone keener than myself to fill in the details.
So long as that Linux partition remains, it is not actually free space, even though it is available.
EDIT: Actually, you don't really need to wipe that partition at all, the formatting process when you reinstall Ubuntu should be more than adequate.
EDIT2: This kind of problem can be avoided by installing each OS on a separate drive.
EDIT3: Hopefully, the reinstallation of Ubuntu would automatically include W7 on the Grub loader as before, but I don't really trust this process or Grub, thus the reason for EDIT2.