Hard Drive With BAD SECTORS HELP!

That's what it does. It will take several hours to complete but it will tell you when it is complete. It will look just like it does now until it finishes, there is no progress indication.

Any partitioning program would have simply removed C without touching the factory recover partition! The clean not clean all command once C was the selected volume would have been the best move leaving the recovery partition intact if not having 7 media since you would need that to be present to make up a recovery disk.

As for the 0xc00000e9 error that's an installation error not hardware issue there. Back when many were seeing that was from a bad burn to disk of the 7 Beta or RC builds. A dirty lens in the optical drive, finger marks on the media used, etc. can also end with errors like that.

As for the unbootable device error that is the result of no longer having any boot information as well as boot loader for an OS on the drive. For a drive totally raw you would only see a flashing dash in the upper corner of the screen when trying to boot from it. Once you have 7 back on however you wouldn't see that unless the need for the Startup repair tool came for some other reason.

If that is a brand new OEM you just voided the warranty to some extent by wiping the factory partition off. But if needed you should be able to order a recovery disk simply telling them you swapped out drives or just borrow a 7 dvd to get Windows back on again using the key on the sticker.

The Clean All command will simply wipe the drive totally clean leaving you with a drive that will need to be partitioned and formatted before or with the 7 installer. That will depend if you want to see the 100mb System Reserved boot partition added onto the front of the drive or partition the drive now by opening DiskPart and typing in a few more commands.

DiskPart
List Disk
Select Disk 0
create partition primary
format fs=nt60 or format fs ntfs
active
exit

and then you are off to the races with the 7 installer!

Some prefer not having it at all while 100mb and keeping the boot area isolated from any possible bugs is strictly upto you. The first clean install on this build saw it while the latest simply saw both C and the 100mb wiped with a new single primary. If you have a 1tb OS drive you don't worry about a few mb being used for it!

I think you should be all set with a fresh primary to work with. The fresh install will see everything including the boot information put back on correctly. Keep us updated on how it works out for you just the same.