The drive has always had that amount used and it is plugged in 24-7 I dont unplug it.
And yet, it does not appear in your screenshot up in post #4 of this thread.
All I did was merge the drive
You did a "merge" using Partition Wizard? Or is your use of the word just a generic figure of speech?
I ask that because along with its "move/resize" Partition Wizard actually does also have a "merge" function, and also an "expand" function". Yes, these are all kind of related but I'm still puzzled by your interesting combination of symptoms, and I don't want to leave the discussion unresolved just because you did finally get your C-partition resized as you wanted:
(1) why didn't your second hard drive show up in the first screenshot? Perhaps it was powered off at that moment, even though you say it is plugged in 24/7? There must be some explanation for why it doesn't show up in your first screenshot.
(2) Curiously, your original screenshot shows TWO 100MB "system reserved" partitions. How could that have happened?? Did you ever actually install Win8 on this same drive? Was it installed as a second bootable OS from Boot Manager, so that you could choose either Win7 or Win8 at machine boot time from the boot manager menu presented?
(3) You say you "merged" the drive, which really is a simple few specific operational steps using Partition Wizard (first "delete" the two unwanted partitions to the right of C, and then "expand" or "move/resize" C to the right to include the now-free unallocated free space previously occupied by the now deleted two unwanted partitions). I suppose you also could have "merged" all three partitions together into the one C-partition and gotten to the same desired end result, but that's not the operational approach I specified when I recommended Partition Wizard be used for its great ease and convenience. You didn't describe the precise Partition Wizard operations you did do, and yet your final screenshot certainly shows those original two unwanted partitions now gone and C is enlarged to use the whole drive.
(4) During your use of Partition Wizard (and you didn't tell us whether you did this starting from the Windows installed program or running from the standalone bootable CD), when you pushed APPLY you say you experienced a strange mid-merge "re-boot loop and BSOD" symptom, which you fortunately managed to stop only by inserting a bootable USB drive (Windows installation disc) and doing a "repair", though you didn't go into too much detail on exactly what that "repair" really consisted of. At the end, apparently your system is once again bootable, and there's only one "system reserved" marked ACTIVE on your DISK0... all of which is good. But the story here is scary.
(5) Your final screenshot now shows the "dark drive" external, which curiously has its own "system reserved" 100MB partition on it. It's possible this came from the vendor of the drive with some system tools in it, but it's a very coincidental size and label name since the Win7 "system reserved" created when installing Windows on a drive is also 100MB. Nevertheless, you say this external drive was never previously used as the boot drive in another machine, and that you didn't create the 100MB partition yourself. So, I guess it must just be from the vendor, and not the result of something that just occurred when you worked on DISK0 with Partition Wizard... although I'm still not completely convinced.
If only this external "dark drive" now showing as DISK1 in your final screenshot had also been visible in your first screenshot, or even your second screenshot (which again it was NOT), we might have more info to work with.
The extra drive is external and it is brand new, it has never had an OS installed to it.
Well then, it must just be a 100MB unallocated space named "system reserved" put there by the drive vendor, because it shows up as "unallocated" in your final screenshot. Very strange, as it's unusable and there can't be anything useful in it if it's "unallocated" now.
Could you possibly have actually "moved" the original extraneous second 100MB "system reserved" partition (shown in your first screenshot to the right of C) to the front of the second drive?? Might that be how it got there?? Or did the vendor of the drive just leave 100MB unallocated? Or did you do your own partitioning somehow when you took this new external drive out of the carton and formatted it yourself, since it probably came formatted as FAT32 and you have clearly re-formatted it as NTFS?
I guess we'll never know.