I have never actually tried to CREATE a recoverery partition, as they tend to come with certain products factory installed. I have removed some with Partition Magic to reclaim HD space but this product has compatibility issues with Win 7.
When you installed 7 it likely left the partition, I had two partions on my HD and it didn't touch the second one (I put mine there on purpose, it was not a factory backup partition). So if it is still there you should be able to send your control panel\backup and restore\create a system image to that partition.
Windows 7 suggested you create a restore disc when you installed, hopefully you did that as this is likely the best way to recover from your existing problems.
Now, your ID makes me hungry for Chinese food, so I am off to dinner while singing "Did you ever think when you eat Chinese, it ain't fish or chicken, but a fat Siamese? But the food tastes great so you don't complain but that ain't chicken in your chicken chow mein. Seems to me I ordered sweet and sour pork but it's Garfield on my fork; it's purring here on my fork."