boot.ini is a windows7 file?

Download and install Partition Wizard Home Edition Free!, this will change your logical partition to a Primary partition.

From Partition Wizard, to start this operation, first select your Win7 E:/ partition from the partition list on the Partition Wizard main interface. In the top menu, click Partitions » under Modify menu, click Set Partition as Primary. By clicking Apply, you well complete this operation.

On one HD you are allowed three primary partitions and several logical partitions or four primary partitions and no logical partitions.

Your previous EasyBCD actions have just remove XP from your Boot Menu. Your boot manager is still on the C drive.

The boot files in your current C partition will not make anything faster.
Your OS should be in the first partition, which makes the HD reader arm work less and theoretically will be a bit faster.

If you make E:/ a primary partition you can put the boot manager there. Delete C:/ and move the space into E:/, which will become C:/ then. If you want to keep your current C:/ for something else, I would still recommend to move the OS partition to the first partition on the HD. This is not required but is generally accepted as the best HD structure.

What are you planning to do with the C partition?

You can just leave the files there for now, this will let Win7 boot.
They will be removed when you re-install Win7 in the C Partition.

The C partition is a little small to install Win7, I would go with a minimum of 30GB, 40 GB would be better.

I recommend to do a clean install, this will ensure nothing will be in the C partition when Win7 is installed.

Clean Installation with Windows 7

Let us know if you have any questions.

Just use the format option, the new installation will see the old Win7 and add it to the new boot menu.

Your welcome,

Let us know how it goes.