Mychael~
I JUST did this with my own system yesterday, due to a Windows Updates problem, and TrainableMan is correct, it will restore most/some things back to "default" . But your
wont lose your programs.
All you do is simply pop the CD in when your system is running as normal, and select reun the "setup.exe" and install windows.
You then , when asked, select UPGRADE. and it will walk you through the motions.
I had done a google search for "Repair Installation of Windows 7" and there was 2 links for which i followed the instructions from .. on was from this particular forum
found here. There is also another (slightly more detailed but the same info any way ) post on a diffrent forum (not sure if its ok to share the link since its from another forum so if you want it let me know or if im given permission from the mods here to share it I will) .
But you WILL have to re do all your windows updates. Including if you installed SP1 and or IE 9.
Hope that helps.
LoneWolf