Thanks again SIW2. I'm not sure yet if I want to come of the $100 that the Pro version costs. I'm giving it a hard think.
In the mean time, here is some more of this saga.
As I said, I had made an image copy of the munged Win 7 OS partition. I did this using GPartEd to copy the OS partition from the laptop disk to an external USB hard drive. Just for grins and giggles, I thought it would be "fun" and instructive to put this munged partition back on the laptop and see if I could use the newly acquired Paragon package to fix it up. Again I used GPartEd to copy from the USB hard drive back on to the laptop. I left the USB drive attached and did a reboot. I expected to see a bootup as I had seen before into the crippled OS, but lo and behold! I see lots of disk activity on the USB drive and what to my astonishment, the system boots back up perfectly! I used the Manage utility to look at the disk structure and I see that both C: and V: are labeled OS partitions. C: was the laptop and V: was the external USB drive, both of which were identical copies of each other. A path command showed all references to V: drive. A set command showed some references to C: drive. Is this weird or what?! Next I rebooted with the USB drive unplugged just to see what would happen. As I expected, it booted up into the non-genuine OS. At this point I put in the Paragon disk and rebooted to see if I could fix it. I used Normal Mode>Boot Corrector>Correct drive letters. I released the V: letter from the OS partition and re-assigned it to the C: letter. I thought it was surly going to work OK on the next reboot, but alas! it came back up in the non-genuine mode, but it was not a light blue background as before, but sort of a lighter shade of black. Groan! I also noticed that it did not say it was "Preparing the desktop" like it had always done when coming into the non-genuine mode. My hopes were dashed! Feeling defeated once again, I hit CTRL-ALT-DEL to bring up the screen where you can choose to shutdown, but the Activate Windows screen popped up instead. I don't think CTRL-ALT-DEL brought it up, I think I had just not waited long enough. In any event, I clicked on the activate on-line link, and a few moments later, it reported that Win & had been successfully activated! Then the delayed CTRL-ALT-DEL screen came up. I heard the familiar chimes in the background that you get after Win 7 boots into your account, so I chose cancel on that screen and my background with all the desktop popped up! Amazing! The only problem was that a few of the app icons were broken because they pointed to the V: drive. That was easily fixed by modifying the icon properties.
So, the bottom line is that the Paragon package was able to successfully fix the registry to point to all the correct drive letters. Everything is again all OK now. This is the answer to caho's original question.
Thanks so much for your help. This has been a great learning experience for me.