That other partition is only 100MB.
That's not big enough to hold the files you need for installing
windows. XP used a cd and 7 uses a dvd. It's been my experience
that partition managers will show the hidden partition that's used
for storing the files to restore the computer to the condition it
was in when it left the factory. I don't know all the details,
but I read somewhere that versions of windows after xp use a 100MB
partition to do the jobs xp did with the boot.ini file.
Thus, I am now trying to find out if it is possible to
just do a fresh
install from the "System Reserve" partition as shown at this link:
http://www.upquick.com/temp/frag521.jpg