Hi hooemeye, when you installed the OS, was it from within windows or from disk? I only ask this because it seems like the installation to C drive was done while E was the System drive. If this is so, then the e drive does contain system files for c !!!!
If so, then you have one choice as far as i can see, remove all drives, and insert only one drive, your hdd your using for system and reformat and install windows in isolation, with no other drives connected.
Then, you can add other drive and should be able to delete partition and format as Bucknutty correctly advises you above.
If not, remove all drives and just connect up e drive and use setup disk to delete partition. Then add back to system ( after fresh install ) and use bucknuttys procedure above.
Hope this helps, keep us updated on how you get on :-)
PS, have you installed all the motherboard drivers and Windows 7 updates as well. Sometimes, functionality like drive access and modification cannot be done until all functionality ( like sata drivers etc ) are installed. The default windows drivers are only designed to get system up and running, you still need to install manufacturers drivers, most especially for motherboards. :-/
PPS, their are many hard disk management software solutions which could help, but if my first point is correct, you will need to fresh install on one hdd, without others being present, not normally a problem but can sometimes fall over. Just Google hard disk management and you will get many hits!!!