I am having the same problem. I got a western digital 1tb hard drive. Someone installed windows 7 ultimate for me...nice but it ended up being not being genuine. Since ultimate was too much. I got home premium. Had reinstall everything and had to reformat the hard drive. I went from a 1tb hard drive to a 99.mb of total space and instead of being a local disk its now being called system reserved Like , wtf did i do and how can I fix it. Do I need a new hard drive now.