Who said to format your Games drive? I said you moved your Win7 System boot files from XP to the Games drive by not first marking it Inactive as instructed.
The solution if you dont' want to reinstall Win7 correctly so that it is on C drive, is to mark all partitions except Win7 Inactive, mark Win7 Active, boot the installer to run Startup Repair up to 3 separate times until it writes the System Boot files to Win7 partition where they belong.
The OP moved his System boot files off of the XP partition (so he could format it) to a Games HD. This is not only wrong, it is disastrously wrong. I am trying to help him correct this error caused by the steps not being followed exactly.
Look at your first screenshot - the System flag is on the XP partition meaning it was booting Win7:
I gave you the steps if you didn't want to reinstall to move the System boot files to Win7 partition: by marking all other partitions except Win7 Inactive, keeping Win7 marked Active, unplugging XP HD to run Startup Repair three times.
You must have done this but without marking the other partitions Inactive, because in the second screenshot the System flag is on F: