Creating a Media-less Recovery / Installation Partition

unforgiving1999 said:

This worked awesome for me, ty for the advice. The Only question I have which i will probley find out any ways is if i boot from the restore partition will it reload the applications such as avg free and microsoft office that i put on, or should i do a back up of those files and save them to the restore partition

NO.
Try this way.
Windows 7 OPK
But if you install AVG, it will be unusble.

You don't need the full installer if you're going to store a WIn7 backup image in a Primary partition on the HD to reimage, just use the System Recovery Options placed on F8 Advanced Boot Options to "Recover Using an Image" and point the reimaging application to the stored image. If you have enough memory it will reimage the saved partitions. System Image Recovery

The image contains all of your programs, settings and any files you had when the image is created or updated. Backup Complete Computer - Create an Image Backup

Always store a copy of the image externally in case of HD failure.