I regularly backup both my desktop PC and my (wife's) laptop, using Paragon Partition Manager Pro 10.
The laptop is backed up via USB to an external laptop drive 160gb.
Ok, I admit I know nothing about Paragon Partition Manager. But it sounds like it's a "partition manager" program (like Parititon Wizard), not a backup program.
While it may be able to "copy partitions" (as can Partition wizard) to unallocated space on the target drive (creating a new partition on the target drive as a result?), or maybe it can even copy a source partition's contents into a target partition, it is definitely not really a true "backup/restore disaster recovery program". And it's not creating a "system image", in the technical Win7 sense of what a "system image" is.
So my guess is that your "regular backups" of the laptop were actually just partition copies, from the laptop's C-partition contents (where Win7 lives) to the external 160GB drive. File copies.
When the laptop's HDD failed I had to use the external 160gb as the replacement drive until a new one arrives. I therefore copied the backup files from the USB drive to my main desktop PC. I formatted the 160gb drive and partitioned it (as seen in the pic),
AHA!
After copying the backup files from the external USB drive to your main desktop PC so that you could re-purpose the USB drive to be the real laptop drive, you partitioned that drive yourself, and didn't notice that the drive you'd intended to be for Win7 was actually formatted as "logical", instead of the "primary" as it should have been.
Interestingly, the second partition on the drive was created as "primary", but that's not the one you targeted for your Win7 partition.
Anyway, the process that's unfolding from your story is not an actual "backup" and "restore" or "re-image using a system image of some sort". It's simply copying partitions and/or the folder/file contents of the partitions, and your own manual creating of the new target partition... which you apparently did as "logical", and didn't notice.
and restored the backups to it by USB from my desktop PC.
You did not "restore the backup".
You really simply COPY'd the files, from the version (of your original Win7 partition) that you'd transferred temporarily to the desktop PC to facilitate the drive swap, to the 58GB "logical" partition you'd created yourself on that 160GB drive. Maybe you meant to copy it to the other 91GB "primary" partition you'd created, who knows. But you actually copied it to the 58GB "logical" partition.
You did not technically "restore the backup" (since there was no real "backup" or "system image"), except in really generic terms you might use to describe what you believed you were doing. You simply copied files.
I then removed the the failed drive from the laptop. Inserted the 160gb HDD and hoped it would boot from there. So the problem started. Hence the request here, and of course the help received.
Correct. That's where the REAL story begins.
When the replacement drive arrives, I will 'copy' the 160gb drive using the Paragon programme.
The strange thing is that on my desktop pc I do not have the reserved partition!!!!!
Ok...
The "system reserved" partition is not absolutely critical to normal booting and operation. It does happen to be created by the Win7 installer if you install to a brand new hard drive, along with the second true C-partition in which the real Win7 OS is placed (both of these being created as "primary" partitions by the Win7 installer). But technically, it's not required... if some other basic requirements are met in another way.
What's required is that (a) the boot drive is marked as "hard disk #1" in the BIOS, and obviously with a laptop you only have one drive, and (b) the boot partition is a "primary" (not "logical") partition that is marked as "active".
In the case of the two "primary" partitions normally built by the Win7 installer (small 100MB "system reserved" and large C-partition for Win7), the boot manager files are placed in the "system reserved" partition. This supports direct transfer from the boot manager program (launched by the BIOS, since it's in the "active" partition on "hard disk #1") to the second C-partition where the Win7 boot process really begins... for a 1-OS setup.
If you had multiple bootable OS's on multiple partitions (potentially on multiple hard drives), then the boot manager files in that "system reserved" partition would present to you a Boot Menu and wait for your response, choosing the desired OS you really want to boot to (say Win7 or WinXP, etc., on different secondary partitions both of which contain a bootable OS).
Now, it's not critical that the boot manager programs and files actually be in a separate "system reserved" partition. All that is necessary is that they be located in (a) the active partition on (b) hard disk #1 per the BIOS. It appears that your original laptop hard drive was structured exactly that way (with Win7 installed and built by the manufacturer that way), with only the Win7 partition itself (and no small "system reserved" partition). Both the boot manager files as well as Win7 itself were all in the same single C-partition, which was (a) the active partition, on (b) hard disk #1, and that's all that's really crucial.
That's why you observed no "system reserved" partition on the original (and failed) hard drive.
What the suggested corrective steps you've taken have thus accomplished, was I believe to first convert the mistakenly created "logical" partition into which you'd copied your Win7 files to "primary", which solves one of your problems. Obviously the newly installed drive itself was still the one-and-only "hard disk #1" to the BIOS.
Then, I believe you marked that now "primary" C-partition as "active", solving your second problem (since a "logical" partition can't be "active" even though somehow Diskmgmt claimed it was, per that screenshot!).
Then I believe you rebuilt the MBR (master boot record) on the drive, which is independent of the partitions but facilitates booting on that drive. This was a third problem.
And now you're finally back in business.
We still are perplexed as to why Diskmgmt showed that logical partition as "active" in your screenshot, but maybe it was confused because it saw a Win7 on the drive and since the other "primary" partition on the drive was not marked "active" just decided to present what we see. It's certainly not correct or realistic, and yet that's the screenshot.
We also don't know why Partition Magic standalone CD thought this drive was all "unallocated".
I think I've reconstructed what really went on in this story, and how you actually ended up the way you did. Hopefully it makes sense, and is accurate.