Did you compress anything else on the partition? I have not seen that situation before, but as pweegar posted, putting a useable bootmgr file back on the active partition, is probably necessary, unless you know how to uncompress it from another source.
If you can boot to the Install DVD or Repair CD see if you can get to the C: partition, or whatever shows as the Win 7 directory. Using a command like bcdboot will also replace the boot files on that partition.
For instance, if you Win 7 partition is C:, then go to that drive in the command window, then type the following command followed by enter and wait for a response.
bcdboot C:\Windows /s C:
This should replace the boot files. If that was your problem, the system should now boot normally. Running a startup repair should do about the same thing. You should have been able to restore to a previous state, so maybe something is wrong more than you seem to indicate.
If nothing else works, get a new hard drive and install Win 7 there then fix the problem.