Yes, you should have your Vista desktop when you are booted into Vista.
You will get the 7 desktop when booted into 7.
From what you are saying, it is possible you installed Win7 onto your first partition.
I can't be sure exactly what has gone on until you highlight Vista in the Boot options and press Enter. Then post another screenshot of bcdedit , while booted into that Vista choice.
Also, while booted into the Vista choice, right click Computer on the start menu, click Open , double click on the C drive and post a screenshot of that window - it will show what is on your C drive.
SIW2