This is a real mess.
Somehow between the Disk Mgmt and Partition Wizard screenshot, system was transferred to D: which is on an extended logical partition that cannot be marked active.
If you want to delete D:XP, then I would try to copy C: Windows 7 off of that extended logical partition into the deleted D: space and convert it to primary so it can be properly marked active.
In doing this, consider deleting also the two FAT partitions (after moving data) to include them in the deleted D: space where you can attempt to copy C: using Partition Wizard bootable CD
. Here's how:
Back up your files and a Windows 7 system image externally.
Boot PW CD, choose 1 for screen resolution, then right click D: delete, click OK
Now right click on FAT and FAT32 partition to delete if desired, click OK
Now rightclick C: Windows 7 partition and Copy. Use Copy Wizard to copy C: into deleted D: space. If PW will not copy from an extended logical partition, undo all steps and report back.
Once copied into first partition, right click C: to Modify: convert to Primary, then Set to Active, OK. Now rightclick old C: partition to delete, OK. Apply all steps.
Now boot into Windows 7 DVD REpair console, click through to Recovery tools, run Startup Repair up to 3 separate times to repair the moved MBR.