image 2 is the Target as it is now, not the cloane layout...
manual:
http://www.todo-backup.com/download/docs/User_Guide.pdf
Cloning w/ resizing partitions starts on page 44
Select the source, select the Target...
on page 45, it tells you that you can "Edit" the structure on the Target drive. On the newer versions of the program, it is called "Layout" Select that and you should see the "as is" display of the partition distribution on the target.
If you mouse over the ends of a partition block, the cursor changes indicating an action. You can move as well as resize the partitions to meet your needs... What your goal is, is to set the OS partition as large as you can make it. This means shrinking the Recovery to just a tiny bit over the used portion and enlarging the OS partition to use all the excess space.
If you cannot do this, I am sorry, I can only lead you by the hand so far..