This is what i did that started the MBR problem:
I hooked up a USB HDD, i tried to install xp to it. Halfway through the install, right after it restarted for the first time, it started to load xp, then gave me a bsod.
It wouldnt let me boot up XP, or Windows 7.
Tried my windows 7 CD and my recovery partition from acer to fix the startup, neither one had a startup repair option.
I put my Windows 7 CD into the CD drive and installed a new Windows 7 onto my E partition, after it installed, i never went into the new windows 7 because when i restarted it gave me a boot list with Earlier Version of Windows, Windows 7, Windows 7 x64 (i know my original W7 was x64 because i had named it that previously before all of this)
I clicked x64 and it worked.
I got onto the desktop and went to disk management, formatted the USB HDD with XP halfway installed on it.
I then formatted the partition E logical drive with the new windows 7 on it.
Marked the System Reserved partition as active, and the original C: x64 7 as active.
Deleted Earlier Version of Windows and Windows 7 on EasyBCD
Here is my new Disk Management Screenshot:
Everything works fine now, i can restart and it gives me a boot list with only Windows 7 x64. Thats why i went on to ask about windows 8 32 bit and its drivers. I think thats why I got a BSOD when installing XP, is because it didnt know anything about my drivers. I checked acer's website and drivers for my laptop (Acer Aspire 7551-7422) and all i could see was 64 bit drivers.
I can install Windows 8 or Windows Vista, if Vista would be better.