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From partition wizard bootable CD
- Delete "system reserved" partition Delete Partition - Partition Wizard Help Video
- Set C primary instead of logical Video help on how to set partition as Primary or Logical.
- Press APPLY. If step 4 is not working boot again from partitition wizard DVD and do step 4
- Mark C "active" How to Set Active/Inactive partition with partition magic? Partition Wizard Video Help.
- Resize C so it takes the space of old "system reserved". How to Move/Resize Partition with partition manager? Partition Wizard Move/Resize Partition Video Help.
Now boot into win7 recovery environment and do a startup repair Startup Repair
Be sure to do a startup reapir 3 times, with reboots in between. Then boot manager and boot menu are recreated on active primary partition. System boot fine now