The first thing you will need is a bootable Windows 7 repair CD. Type System Repair Disk in Start Search box to make one. Then make sure it will boot: Boot from CD - How to Boot your Computer from a Bootable CD or DVD - Boot to CD
Make your Vista recovery disks if you haven't done that yet, as the recov partition may not work once you remove Vista. Back up your files and a Windows 7 backup image externally as resizing operations can fail.
Next boot free Partition Wizard bootable CD
, select 1 for screen res, rightclick on Vista partition to Delete, OK. Then rightclick Delete recovery partition if you want.
Now rightclick on Windows 7 partition to Modify>Set Active, OK. Then rightclick>Resize, drag left border over the deleted Vista space, drag right border if you want to make room to Create Logical data partition, OK. Apply all steps.
Now boot Windows 7 Repair CD, click through to recovery tools list to run Startup Repair up to 3 separate times to rewrite the MBR to Windows 7.
Once you have Windows 7 setup as you want, save a Windows 7 Backup image externally so you never have to reinstall again, just reimage the HD or a replacement in 15 minutes.
I would be on the lookout for a bootable Windows 7 installer. You can unlock all versions in any installer by removing the ei.cfg file from Sources folder, then recompiling ISO to burn to DVD: Bootable ISO - Create from Installation Files
. What is in the autorun app listed in screenie? Can you run it?