can't restore windows 7 image or reinstall windows 7

I work in a technical profession, but I am not a hardware or windows expert. I have put PCs together before. I had this one done for me. I can read manuals, but I need some guidance. Please bare with me.

Specs:
Windows 7 Home Premium 64 bit
16 gb ram
intel i5
gigabyte z77x-ud3h motherboard
ocz vertex 120 gb flash drive (windows 7 installed here)
2 x 1tb raid mirroring set up. no windows install here (I know. I was lazy).

access to a windows 7 laptop in case this is necessary to make a restore disk or something (yeah should have done this too).

Need: Either restore from an image (from same computeR) or reinstall windows. I have system restore points and backups externally of important files.

Errors:
1. cannot boot up at all from my OCZ flash drive. Getting non-bootable disk. See below for details.
2. when doing the image restore, get 'image made in efi and this booted in bios'. I ran the image backup on this PC. I see in bios that this is efi and dual bios. Anything I can do to make this work? Motherboard spec is above.
3. Tried to reinstall windows 7 and got 'cant install windows 7 to microsoft reserved partition. it is reserved. or something like that. If #1 is not possible, how do i get rid of this existing partition on my OCZ drive and install windows over it?


Backstory
1. got alerted by windows 7 that there was an issue with my disk drive.
2. immediately ran a windows back up to my RAID drive.
3..Restarted and did a chckdsk /f /r on my C drive.
4. It makes it to stage 4 out of 5 with about 221,000 out of 265,000 files read then it hung all night.
5. restarted in safe mode. then command line chkdsk again. Same issue as #4 for several hours
6. restarted. now the drive can't be recognized.

I know that restarting during chkdsk is bad, but if its stuck for hours, I don't think it will finish.

Have:
1. image backup from May 31, 2012 and system restore points on my RAID hard drives.
2. have system restore points. Have my important files backed up to my RAID drive and to an external drive. Not worried about losing data.

Next Step: Booted from Windows 7 CD
1. tried a repair and restarted. Didn't work. Then booted from windows 7 again
2. tried to restore the Image backup. Got the Error "backup made in UEFI and this is booting in Bios"
3. Googled the issue in #2 repeatedly saw lots of posts, but none of the answers made sense.
4. Went into my bios and it says "uefi dual bios". So is tehre a way to get the disk to boot from uefi or something so I can restore the image? The image was MADE ON THIS COMPUTER USING THE WINDOWS 7 GUI. What do I need to do?

Option 2:
Reinstall windows 7.
1. I am ok reinstalling. I have everything backed up. I have windows 7 restore points and my important files are backed up separedly to my internal disks and to an external drive.
2. When I try to do a reinstall it says it cannot install on my 120 GB OCZ drive since it is MBR and reserved.

So for option 2: How do I blow away this partition and set up a new partition so I can reinstall? I would prefer to do the system image, but I'll take a reinstall.


Option 3:
My 1 tb raided drive is not partitioned for a windows boot sector. How do I do this? Can I do this from the boot disk or from bios? I have the Motherboard manual, but its confusing to a novice.

Yes I know there may be something wrong with my Disk, but before I spend money on a new one, I'd like to try this. I also know that acronis is better and so on. Please help me with where I am at.

Also, please don't send me a link to a long document explaining UEFI. I already tried to read it and I got lost.

btw, I am writ