Low disk space on System Reserve

I'm also wondering why I got the "not enough free space in the system reserved partition" message. I didn't get that message this time around, I just assumed it was going to happen based on past installs. I expanded mine to 200 MB, but I had to start with a clean slate to do it. I started the Windows 7 install, deleted the Windows 7 partition, then expanded the system reserved into the free space. Then I created my partitions for windows 7 and Windows 8. Right now there is only 33 MB being used in my system reserved? Starting to wonder why I bothered expanding it? I ended up installing Windows 8 from Windows 7 and did a custom install. My PC wouldn't boot from the Windows 8 DVD for some reason.

Please post back a screenshot of your maximized Disk Mgmt drive map and listings, using Snipping Tool in Start Menu. Attach file using paper clip in reply box.

If SysReserved is given a letter it will sometimes fill up with crap written there. But it seems you cut it out by marking C Active to run Startup Repair until C became System flagged, correct?

Did you correctly boot the Win8 installer to install to a second partition. Do you now have the metro-style Win8 Dual Boot menu?

Yes I do have the metro dual boot menu.

You can recover the disk space from SysReserved into D (as shown in screenshot) using free Partition Wizard
bootable CD - not the Home version which like all other 3rd party managers can fail.

Partition Wizard Move/Resize Partition Video Help.

Or you can just delete System Reserved in Disk Mgmt. Have your repair disk handy since resizing or deleting on the boot sector can in rare cases require running Startup Repair.