iseeuu--Here is a screen shot of my Computer Management window
http://img249.imageshack.us/img249/1673/computermanagementf.jpg
Disc 0 A 1TB internal hard drive.
Unallocated space, from which I assume I could create a Simple Volume and then extend C: into it. A right click on it offers the options to create a Simple Volume, Properties and Help.
C: contains my Windows7 Ultimate 64bit installation and all my working files.
System Reserved. A right click on it offers only to change Drive Letter, Shrink (about 15MB), Properties and Help.
D: is empty. I have only recently received this PC and have not set everything up yet.
Disc 1 A 500GB internal hard drive.
F: contains a copy of the most important files from C:
I did not have my external hard drive connected when I took the screen shot. It contains three partitions--all of which are Primary and one is Active. None are Boot or System. And there is no System Reserved partition, although this is the drive in which
I created the partitions. I do not know why creating partitions on the external drive should have created the System Reserved partition on Disc 0, but this is how I remember it.
A right click on C: shows that the option to make it Active is available, though I have not tried.
My only real concern about having the System Reserved partition--especially where it is-- is that it prevents C: and D: from being contiguous and therefore (I assume ) is the reason Extend Volume is disabled for each.
I look forward to your further comments and advice. Thank you.