Depending on where the order of the partitions, I wonder if removing the Recovery Partition might give you problems with booting Windows.
I recently installed XP Home (from a USB drive as the netbook doesn't have a CD) on to a netbook which had a Recovery Partition as the first partition (and which I wanted to leave in place for the time being). I think the install got a bit confused by the USB drive (which the install booted from) and thought of it as the first hard disk and, as a consequence, boot.ini of the installed XP Home indicated that Windows was installed on the 2nd disk (which wasn't true once the USB drive was removed) AND, more pertinently to what you are intending, it had not allowed for the installation being on the 2nd partition (i.e. after the Recovery Partition) and so was looking for the Windows folder on the wrong partition.
As a consequence, I had to manually reset boot.ini (using the Recovery Console) so that Windows would boot.
Having said all that - maybe Win7 doesn't work in write the same way.
Also, if the Recovery Partition is after the Windows Partition, then the issue that I have alluded to should not arise in any event.