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Ok well at least that answers that question, xp is not recognising the existence of 7, if I remember rightly thats normal, 7 would recognise xp but not vice versa and I am guessing that in itself is the problem here if, as you say, the full Win 7 installation remains on that particular partition, your play with xp sent that primary and it won't recognise 7.
One way to get around this is to download "easy BCD", you can get it from Softpedia or CNet free, once you open that up it should all make sense, it should recognise both installations and allow you to set them both, it's ages since I last used it and am at work now but I remember it being pretty straitforward, it sorted similar problems I had about 18 months ago.
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