Windows 7 thinks there are two installations

The only clue which looks different from the norm is that your 100mb System Reserved partition is not marked Active.

You could try marking it Active in Win7 Disk management, then boot the Win7 DVD repair console or Repair CD, click through to Recovery Tools list to run Startup Repair up to 3 separate times with reboots so it writes the MBR to 100mb SysReserved.

What could have happened is your bootrec commands partly recovered the MBR into Win7 partition while 100mb somehow remains System partition, causing bootmanager to think there are two Win7's.

Thanks to all for the advice but seeing as the OS install was only 4days old we made the decision to remove all partitions, reformat the drive and do a fresh install. Seeing as we would lose no data or anything it seemed pointless to continue trying to rectify the problem.

I have definetely learned an amazing amount from this brief experience though.

I encountered the same problem while working on a friend's computer. I searched forums for hours and found one useful workaround. That is, if your system does eventually boot into the correct installation on it's own, you can shorten the time it takes to make this decison to 1 second, hardly noticeable. I can't say but you may be able to set the correct installation as well at this point. Both of my "installations" worked no matter which one I chose (There was only one visible installation on the c: drive). At some later date, if you do choose to do a dual boot installation, you'll have to remember to set this to a longer time span. Go to "System Properties," "Advanced," "Startup and Recovery," and choose the default operating system, a good W7 installation (mine both worked), and check the "Time to display list of Operatings Systems.. 1 second." The problem originated from canceling the first installation attempt very early in the installation process. Good luck, hope this saves at least one person from doing the whole process from scratch.

I would try a Repair Install before reinstalling as it is the next best thing: reinstalling the OS while keeping all programs, files and settings in place.

It also reconfigures the boot which would remove the corruption that was causing it to display a ghost OS which could not be removed at msconfig>Boot or EasyBCD Add/remove tab.