'Repair your computer' option boots into Windows regular mode

I have a Dell Studio 1555, win 7 Home Premium. I am trying to restore the system to Factory default. After pressing F8 at startup, when I select 'Repair your computer', it boots into regular Windows.

I think it has something to do with the Partition identifiers? Please help.

Thanks.

Here's the disk management and bcdedit txt


Windows Boot Manager
--------------------
identifier {bootmgr}
device partition=\Device\HarddiskVolume2
description Windows Boot Manager
locale en-us
inherit {globalsettings}
default {current}
resumeobject {2e2bbff2-7ed7-11df-9ee6-b8ac6f71b5d7}
displayorder {current}
toolsdisplayorder {memdiag}
timeout 30
Windows Boot Loader
-------------------
identifier {current}
device partition=C:
path \Windows\system32\winload.exe
description Windows 7
locale en-us
inherit {bootloadersettings}
recoverysequence {e2c59e81-383d-11e3-a47d-cc480d712c4d}
recoveryenabled Yes
osdevice partition=C:
systemroot \Windows
resumeobject {2e2bbff2-7ed7-11df-9ee6-b8ac6f71b5d7}
nx OptIn
Windows Boot Loader
-------------------
identifier {e2c59e81-383d-11e3-a47d-cc480d712c4d}
device ramdisk=[\Device\HarddiskVolume2]\Recovery\WindowsRE\Winre.wim,{e2c59e82-383d-11e3-a47d-cc480d712c4d}
path \windows\system32\winload.exe
description Windows Recovery Environment
inherit {bootloadersettings}
osdevice ramdisk=[\Device\HarddiskVolume2]\Recovery\WindowsRE\Winre.wim,{e2c59e82-383d-11e3-a47d-cc480d712c4d}
systemroot \windows
nx OptIn
winpe Yes
Resume from Hibernate
---------------------
identifier {2e2bbff2-7ed7-11df-9ee6-b8ac6f71b5d7}
device partition=C:
path \Windows\system32\winresume.exe
description Windows Resume Application
locale en-US
inherit {resumeloadersettings}
filedevice partition=C:
filepath \hiberfil.sys
debugoptionenabled No
Windows Memory Tester
---------------------
identifier {memdiag}
device partition=\Device\HarddiskVolume2
path \boot\memtest.exe
description Windows Memory Diagnostic
locale en-US
inherit {globalsettings}
badmemoryaccess Yes
EMS Settings
------------
identifier {emssettings}
bootems Yes
Debugger Settings
-----------------
identifier {dbgsettings}
debugtype Serial
debugport 1
baudrate 115200
RAM Defects
-----------
identifier {badmemory}
Global Settings
---------------
identifier {globalsettings}
inherit {dbgsettings}
{emssettings}
{badmemory}
Boot Loader Settings
--------------------
identifier {bootloadersettings}
inherit {globalsettings}
{hypervisorsettings}
Hypervisor Settings
-------------------
identifier {hypervisorsettings}
hypervisordebugtype Serial
hypervisordebugport 1
hypervisorbaudrate 115200
Resume Loader Settings
----------------------
identifier {resumeloadersettings}
inherit {globalsettings}
Device options
--------------
identifier {e2c59e82-383d-11e3-a47d-cc480d712c4d}
description Ramdisk Options
ramdisksdidevice partition=\Device\HarddiskVolume2
ramdisksdipath \Recovery\WindowsRE\boot.sdi

I just want to get it back to factory defaults, since i'm giving away this laptop to someone.

Does anyone have any suggestions on this please? I really need to get this resolved as soon as possible. I'd really appreciate your help, thanks.

I don't have OS disks, therefore need to boot from the recovery partition to restore to factory settings. There are issues with the system (intermittent problems), like freezing etc.