system recovery option not compatible with version of windows

The previous screen shot was after the OS reinstall...

Not really answering my question regarding accessing the data on the desktop...

Nor did you answer my question whether data was viewable in Explorer now.

Because if not I was going to suggest you browse into the HD from boot using Copy & Paste - in Windows Recovery Console or Paragon Rescue Kit Free Edition 11.0 Free to see if data is viewable to be copied out in the mini-Explorer there.

Maybe you didn't read my very first post in this thread, third paragraph:

"The real (dis)interesting part to all of this, is that yes important data is off on drives other than the OS drive though did have a few files with mostly shortcuts on the desktop. In accessing the first OS (H1) via the second (H2), after fighting through the "access is denied" and "ownership rights" UAL BuSines, only half of the files that were on the desktop are actually in the desktop folder/directory. Is it worth fixing the OS on H1 to get into Windows to see if these files magically reappear or is what I'm seeing directly in the folder all that remains."

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I already copied all of the files that were on/in the desktop folder (via explorer on the "parallel OS install", which were half of what was there when the OS was functioning. My questions are: where did the other half go, why did they go there, and how do I get them back? Are there desktop folder backups to check in?

I was asking about now, and whether you had browsed in to look for the missing data using a rescue disk from boot.

There is no difference between now and then. It is the same build for both disks and OSs. I don't know why you think something has changed. I haven't changed anything since posting here to this forum. I have already navigated into the desktop folder via explorer from the parallel installed OS to the second drive. Is there a benefit/difference to doing it from a rescue disk? In other words, are move files viewable in the desktop folder? Is there only one desktop folder or are there others for backups in case of this (shadow copy)? I'd rather not follow a hunch.

Found this on another forum, I suppose this may be the answer:
Recover lost or deleted files

Whether or not it will work from another OS install is now the question, probably not as it won't be able to recognize a previous restore point. And I don't think it was activated/on to conserve drive space.

I haved Grub4dos problem, and try to solve with the steps in this thread "Grub4DOS" on boot and bring me to BOOTMGR is missing CTRL+ALT+Delete to restart.
I tryed to use recovery option throguh usb cause i'm using raid controller and my optical drives is not recognisable in bios. I made the usb from my windows dvd that i used for windows installation. Now i have this problem that windows on usb is not compatible with the version of windows. Could this be accured because i have instaled updates on my windows? when i go to load drivers can i load some drivers for the optical drives or not?

Try new media written to stick with tool in Troubleshooting Windows 7 Failure to Boot. If you have UEFI install then you must use a different tool.

In case the problem is Updates, once you confirm the Partition Marked Active
and run Startup Repair a few times, if this does not offer System Restore then run it manually from the Options list.

You might also be able to access System Recovery Options from F8 menu.

Why are you using RAID? We see nothing but problems with RAID. Not one single RAID success story has been reported here that I have seen. If you exhaust all of the steps for Troubleshooting Windows 7 Failure to Boot then I would change to AHCI, unplug one HD and install Win7 to a single HDD. If you want faster then get an SSD. RAID is nothing but problems and confers no advantages that I've seen, only problems.

Why are you using RAID controller if there is only one HD?

Work through the Troubleshooting steps linked below and when you get to Partition Wizard steps post back a picture of the booted PW disk drive map showing all listings.

You may need to clear infection and confirm partition marked Active before Win7 will repair.