When it starts up it boots straight into system recovery, but says it is unable to fix the problem.
I formatted a USB stick to boot, Win 7. But, my current laptop I'm using to fix the netbook is x86 Windows Vista. The netbook is Windows 8 x64 and the Windows 7 is x86. Not sure if any of this would make an issue.
When I open boot manager, it only shows network boot v6 and v8. I've already set CMOS to:
NETWORK BOOT v6
NETWORK BOOT v8
Is there anything I can try? Or any way around anything I'm currently doing (because it is not working).
I think what you are experiencing is NOT the system recovery but Windows trying to repair itself.
Booting from that hidden partition on your hard drive will NEVER be done automatically. You have to tell it to boot by following the instructions in the link I gave you.
Restoring the System Fully
In the event of a complete crash, press "Alt" and "F10" during the system's startup (as soon as you press the power button) to enter eRecovery mode. This returns your system to its factory settings, erasing all programs and personal files in the process. Only use this method as a last resort, when all other troubleshooting steps have been exhausted.