Debbie the Support Engineer is only partially correct. The System Reserved partition stores boot files should the windows installatiion need to be recovered due to system failure of some sort. It is the more advanced feature comparable to the "System Restore"
from Windows XP. Deleting this partition is possible post WIN 7 installation, but it is for more advanced users as you may run into boot problems. If you manage to delete this partition, you will a performance boost of possibly up to 30%. By doing this,
you lose the system recovery functionality and you should resort to drive cloning every month or so to back up your system should you find yourself in the middle of a catastrophic failure later down the road.
When you delete this System Reserved partition using a third party tool like Acronis Back Up and Restore, it warns you that your system may not boot afterwards. Delete the partition, and mark the Boot drive (drive C) as the "active partition". Then exit
the program, and restart the pc with your Windows 7 CD/DVD and select the repair option and run the diagnostic tool to repair the startup process and master boot record.