System Reserve Partition Problem?

I recently lost my whole C Drive over a dumb mistake, so I had to get it reinstalled along with all drivers.
When I got it back, it appears the guy moved the "System Reserve" files from the System Reserve Partition and placed them in the C: Drive.
When I looked in Disk Management, it shows the 101 mg partition but it's "Unallocated".
When I looked in the C: Drive from the Start Menu, I found the Boot Folders and Boot Mgr, etc.

The computer seems to boot with no problem, but here's my concern:
I use Windows Backup and Restore program.....Will this effect my ability to create and /or restore from a Windows System Image?
Or any other negative issues?

Also since that 100 Mg partition is just unallocated now, any reason I can't just merge that space with my C: Drive?
Any other possible issues with this or do I need to just have 'em redo the whole thing?
I'd just as soon leave this way if it won't create any problems.
Help!

Thanks VistaKing, that was really fast! LOL
I was just worried that it might mess up the Windows Backup & Recovery program for creating/recovering from a System Image since I no longer have a System Reserve Partition.

Thanks for the help. I'll go ahead and make a System Image then and we'll see how it goes.

You can't extend a partition with Disk Mgmt to the left, so use Partition Wizard boot CD to Resize Partition - Video Help.

Your friend obviously reinstalled to C without first deleting the existing partitions as should always be done. The installer saw the drive as pre-partioned so marked C Active to begin install and didn't create the SysReserved as it does on an unpartitioned HD.

Make sure the System Active boot flags are all on C first.

VistaKing said:

You could create a System Repair disc from within Windows to help you reimage your PC from the Windows backup and restore

Link : System Repair Disc - Create

Useful info below

System Image Recovery

Use step 2 option 3

Thanks VistaKing. I've created 2 different Images and they were both successful. I had already made a repair disk from an earlier System Image, same computer, same software, just a different reinstall.
I assume it would still work?