@gregrocker,
Thank you so much for the reply. I was to take a pic of the disk management but it's taking too long..I don't understand really..but allow me to give some details so you can have an idea of the set-up.
On this machine there are (2) hard drives:
Boot Disk : WD 320gb SATA 2 drive with 3 partitions:
a. WD320_W7 (C) --total size 107gb
b. WD320_XPSP3 (D) --total size 107gb --contained the boot folder of the Windows 7 partition(WD320_W7)
c. WD320_Back(I) ----total size 83gb --empty/target partition for the 3rd boot of Windows 7
Logical drive : WD500gb SATA 3 drive with 4 partitions:
a. WD500_2 (E) --total size 161gb
b. WD500_1A (F) --total size 58gb
c. WD500_1B (G) --total size 83gb
d. WD500_Image Backup (H) --total size 163gb
That logical drive is where I keep all my files/backup of those files etc and image backups.
I do image backups with Acronis True Image Home 2011 Build 6942. I also have EASEUS Partition Master 9 Pro.
Now I have an existing image backup of the hard drive that failed on me which is:
SGT_KIS12_W7.tib -- image size is 15.3gb (This image came from an old 160gb Seagate IDE drive. The image backup (SGT_KIS12_W7.tib) has the System Reserve in it along with the Windows 7 partition.
Now in ATI Home 2011 I can "Explore/Recover" that image backup and just select the Windows 7 partition.
I plan to recover it to
c. WD320_Back(I) ----total size 83gb
I tried to do that earlier but Acronis said FAILED.
A couple of questions please,
i. Can I use that image backup? I have a different setup there and I like using it over the WD320_W7. It's a leaner setup made for office/design applications etc.
ii. . If I cannot use that, "is" the "shrink" partition you mentioned for the
a. WD320_W7 (C) --total size 107gb and then I'll try to recover that in
c. WD320_Back(I) --total size 83gb ...Yes?
I am not really someone who knows much about all of this. I try to learn as much from reading and searching from forums such this so pardon if I seem slow to comprehend

I'll try to get that image of the Disk Management later and post it again here.
Thank you very miuch for the accomodation!