What does system reserved mean

It could be that system reserved was reserved for the boot, but what drive that u put in? Brand new or used?

The 100MB partition is a system partition and contains boot files. Disk Manager will not allow you to remove this partition because removing this partition could cause the system to not boot.

Would that be your case?

http://www.sevenforums.com/installation-setup/146416-re...

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.  

You are looking at something wrong here, Windows does create a hidden 100mb reserved partition, but installs itself in the main one.

You can install Windows again though, delete the partitions on the drive, then format and install Windows.