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#11
Have you tried Acronis Disk Director Suite for partitioning. I think you can achieve your objective in a jiffy if you use it.
I would have first merged the unallocated space with the 100 mb SystemReserve Rartition and then taken space equal to the unallocated space from the front of this merged partition to merge with the partition containing Windows 7.
All of this could have been done in a single operation with the Disk Director Suite Boot CD which incidentally also has Acronis True Image on it.