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#21
No that is not correct. Your choices are either Reinstall or Recovery, not both.
Recovery is run from it's partition or disks you make or order from Lenovo if they have them available. It reinstalls all of the preinstalled bloatware which tends to corrupt and smother Win7, so it is an inferior install to the reinstall.
A Clean Reinstall - Factory OEM Windows 7 is much superior and is explained in detail in the blue link tutorial. I have now told you twice that the latest installer is available in the tutorial so you don't have to do all of the updates in SP1 afterwards.
To install Basic which apparently is your licensed version, download the ISO for Home Premium and unlock all versions in it using the eicfg removal tool before burning it to DVD or writing to flash stick. Then choose the licensed version from the menu at install.