No. You just need the OS for it to run fine. And you can get clean and safe win7 install iso files you can burn to a disk or place on a USB thumbdrive from
this tutorial (step 1 and 2). Just need the sticker with the activation code, that is somewhere on the underside of the laptop.
That PQSERVICE is the recovery partition, that has the
awesome power of being less-useful than a real install DVD/thumbdrive as it can be a safe haven for malware, if the hdd fails it is lost with everything else on it, and the windows 7 it installs is full of "enhancement" programs and suites that we call bloatware or crapware as serve little purpose but slow down the computer.
Removing that partition has the only negative effect of voiding warranty.
Point is, you may want to keep your stuff/programs and not start from scratch. There are programs that clone the drive contents on a new empty drive (bigger or smaller as long as the data can fit),
this post goes more in depth.
Since you have a laptop, you may need either to find a friend with a desktop, or buy a
external hard drive enclosure, a box with connectors for a normal HDD or SSD inside and a USB or eSATA port on the outside. First you put the SSD into it, clone the HDD on it, place the SSD in the place of the old HDD. Make sure that you are buying an enclosure, that is an empty box.
You can also use a drive caddy as said above to place both drives as internal in the place of the DVD reader (the reader can be then placed in a
slim external DVD reader enclosure which is the same thing as a hdd enclosure, just different size of the box). This is what I'd actually do. As it makes no sense to rob a bank to buy a 500 GB SSD when you can do fine with a 120 GB one plus the older HDD filled of the bulky but dumb data (images, videos, movies, music, documents). SSDs are best used for programs and OS only. Unless you swim in cash anyway.
I doubt you need that DVD drive so often nowadays.